THE United States has imposed restrictions on exports to a Chinese government-backed chipmaker it says threatens US national security, reports Bloomberg.
The Commerce Department said it's blocking sales of American components to Fujian Jinhua Integrated Circuit Company, recalling a similar ban that brought telecom giant ZTE to a virtual standstill.
Jinhua 'poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States', the agency said.
Derek Scissors, a China expert at the American Enterprise Institute, said the company was one of the country's potential national champions and is in a dispute with its main competitor, US chipmaker Micron Technology Inc.
While the Commerce decision helps Micron in the short term, the administration is trying to set a precedent for how it treats Chinese state-owned enterprises in the long run, he said.
The Commerce Department said it's blocking sales of American components to Fujian Jinhua Integrated Circuit Company, recalling a similar ban that brought telecom giant ZTE to a virtual standstill.
Jinhua 'poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States', the agency said.
Derek Scissors, a China expert at the American Enterprise Institute, said the company was one of the country's potential national champions and is in a dispute with its main competitor, US chipmaker Micron Technology Inc.
While the Commerce decision helps Micron in the short term, the administration is trying to set a precedent for how it treats Chinese state-owned enterprises in the long run, he said.