The US Department of Commerce struck a blow at Chinese companies. The agency added to the blacklist the chipmaker SMIC, which is called the “heart” of the Chinese economy reports Reuters .
In total, the Ministry of Commerce blacklisted about 60 Chinese companies. There were enterprises that, according to Washington, have ties with the Chinese Armed Forces and are involved in human rights violations. Firms on the list will have to get approval from the agency in order for US suppliers to sell parts to them.
Earlier, the head of SMIC suddenly announced about leaving, after which the company excluded one of the world’s major stock indices. The reason lies in the legal prohibition of cooperation with certain Chinese enterprises in the technology sector for American residents.
SMIC was considered a prime candidate to replace Taiwanese TSMC in supplying equipment to smartphone manufacturer Huawei, but now the company itself depends on foreign components.