CHINESE CHIPMAKER DENIES TIES WITH PEOPLE’S LIBERATION ARMY

China’s leading maker of semiconductors has denied it has any links to the military following reports Washington is considering stepping up its feud with Beijing over technology and security by imposing export controls that could disrupt manufacturing for a national industrial champion. 

US regulators are considering adding Semiconductor Manufacturing International Corp. (SMIC) to a list of foreign buyers that need government permission to acquire technology or components, according to The Wall Street Journal and other outlets. They said officials are looking at whether SMIC plays a role in Chinese military development, the Associated Press (AP) reported late on September 6, 2020. 

“We have no relationship with the Chinese military,” the company said in a statement. It said SMIC products are “solely for civilian and commercial end-users and end-uses.” 

The company said it is “open to sincere and transparent communication” with Washington to resolve “potential misunderstandings.” SMIC is a leader in a semiconductor industry built up by the ruling Communist Party in an effort to reduce China’s reliance on foreign technology. The Trump administration is trying block Chinese access to US technology it worries might be used to make weapons or develop competitors to American industry.