Skip to main content

Trump administration looking at banning business with China’s largest chipmaker

The Trump administration is reportedly looking into adding China’s largest chipmaker to the Commerce Department’s entity list, which will severely restrict the company’s business with U.S. firms.

Recommended Videos

A spokeswoman told Reuters that the Defense Department was working with other agencies to determine whether Semiconductor Manufacturing International Corporation should be blacklisted, similar to the treatment against other Chinese companies such as Huawei and ZTE.

Please enable Javascript to view this content

The proposal was confirmed by a Pentagon official, but the reasons for the action were not revealed. However, sources told Reuters that the Trump administration was scrutinizing ties between SMIC and the Chinese military.

In its response to matter, SMIC said that it was “in complete shock” that the Trump administration is considering adding the company to a trade blacklist. SMIC said that its alleged ties with China’s military are “untrue statements and false accusations,” but it remains open to working with the U.S. government to resolve “potential misunderstandings.”

If SMIC is blacklisted, U.S. suppliers will need to secure a difficult-to-obtain license before they are allowed to continue shipping components to the chipmaker.

U.S. vs. Huawei

It remains to be seen if SMIC will suffer the same fate as Huawei, one of the Chinese companies that have been hit hardest by the Trump administration’s restriction. New rules issued by the U.S. government in May further clamped down on Huawei’s business.

A report from the Federal Communications Commission, however, revealed that it will cost rural telecommunications providers at least $1.8 billion to replace the equipment from Huawei and fellow Chinese manufacturer ZTE that are currently in use in their networks.

Aaron Mamiit
Aaron received an NES and a copy of Super Mario Bros. for Christmas when he was four years old, and he has been fascinated…
Trump reportedly still wants U.S. government to get paid in proposed TikTok sale
tiktok logo next to trump

President Donald Trump is reportedly still pushing for the U.S. government to receive a payment in Oracle's proposed deal to acquire TikTok.

Trump spoke to Oracle Chairman Larry Ellison and Walmart CEO Doug McMillon on Friday over the phone, while he decides whether to approve the transaction with TikTok's Chinese parent company ByteDance, Bloomberg reported, citing sources familiar with the matter.

Read more
TikTok vows to challenge Trump’s ‘unjust’ ban
tiktok logo

TikTok, in response to President Donald Trump's announcement Friday that the popular video-sharing app will be banned from app stores starting this Sunday, September 20, said it plans to dispute the executive order, calling it "unjust."

"We will continue to challenge the unjust executive order, which was enacted without due process and threatens to deprive the American people and small businesses across the U.S. of a significant platform for both a voice and livelihoods," a TikTok spokesperson said in a statement. "We disagree with the decision from the Commerce Department, and are disappointed that it stands to block new app downloads from Sunday and ban use of the TikTok app in the U.S. from November 12."

Read more
What happens if Trump bans TikTok?
tiktok logo next to trump

"We may be banning TikTok," President Donald Trump told reporters late on August 1.

The surprise announcement kicked off a messy saga that is getting closer to an end. Trump signed an executive order that sought to ban TikTok due to national security concerns in 45 days unless the company sells off its U.S. operations to an American owner.

Read more