US restricts exports to Chinese semiconductor firm Fujian Jinhua

US restricts exports to Chinese semiconductor firm Fujian Jinhua

"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security", Commerce Secretary Wilbur Ross said.

The U.S. Commerce Department is restricting American firms from exporting parts to a Chinese DRAM producer that develops semiconductors. The company also stands accused of stealing proprietary information from a U.S. company, Micron Technology.

President Donald Trump has painted China as an economic threat to the United States and American companies and based his aggressive tariff strategy on the goal of preventing the country from becoming dominant in key technology sectors.

The Commerce Department appeared to side with Micron in its statement, claiming that the "likely US -origin technology" to be produced at the new Fujian plant would threaten "the long term economic viability of USA suppliers of these essential components of USA military systems". The company has now been put on what is known as an Entity List, which will require Jinhua to apply for a license in order to receive USA exports of commodities, software, and technology.

The action is similar to a Commerce Department move that almost put Chinese telecommunications equipment company ZTE Corp out of business earlier this year by cutting it off from USA suppliers.

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Adín Josué, left, and Juan Carlos, were deported from Mexico on October 30, 2018 , after being found inside a migrant caravan. A migrant child barely able to continue onward jumps onto a truck to rest during the caravan to Tapachula, Mexico.

The first was ZTE after the company was caught exporting products to Iran and North Korea.

Fujian Jinhua and Taiwanese partner United Microelectronics Corp.

The move comes as the United States and China are locked in a standoff over trade, market access and the transfer of technology secrets. Micron Technology, a computer memory company in Idaho, accused Jinhua previous year of stealing intellectual property.

UMC counter-sued in China, and in July 2018, the Fuzhou Intermediate People's Court blocked Micron from the Middle Kingdom. "The additional production, in light of the likely US -origin technology, threatens the long term economic viability of USA suppliers of these essential components of US military systems".

The Commerce Department cited a "significant risk" that the Chinese firm's new memory chip capacity will threaten the viability of USA suppliers of chips for military systems. The company has invested $5.65 billion to build a factory in China devoted to producing memory chips.

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