SIMC Added to US Entity List

Restrictions from the Trump Administration haven’t stopped towards the end of Donald’s presidency, with Chinese corporations being informed they’re unable to purchase American-made products any longer. Multiple companies are blacklisted after POTUS implemented new tariffs regarding technology suppliers, eliminating Chinese companies from purchasing American-developed chipsets. Considering that 15% of total imports into China are chipsets from the United States, this tariff is unlike any other introduced under Trump’s leadership.

The Commerce Department Entity List added dozens of Chinese companies onto their blacklist, with “Semiconductor Manufacturing International Corporation” and “DJI” being added. Blacklisting SMIC will have long-standing implications onto the global technology market, with the company acquiring semiconductors made in the United States to power products like smartphones & tablets. Without semiconductors from America, China cannot continue development of their 5G Infrastructure by Huawei. Governments worldwide have worked diligently towards eliminating Huawei’s 5G Infrastructure, with evidence from the United Kingdom that China’s communist party was spying on foreign civilians via this 5G Infrastructure.

Corporations wanting to provide their products to SMIC must apply for specialized licenses, with “Presumption of Denial” being announced for all applicants. It means that most won’t receive commissions. Evidence indicates that semiconductors are being used for various military projects, including cybernetic attacks on North American & European services. Those include the electric grid & military network.

CEO Resigning

This isn’t the first problem to arrive for SMIC in December 2020. Several days before learning imports from America had been restricted, reports across Chinese State Media noted that CEO Liang Ming is resigning from his position. That brought prominent concerns for investors, with stock market valuations for SMIC dropping by substantial volumes in 24 hours. Technological ambitions for China have virtually been halted by introducing these restrictions & tariffs. It’ll become nearly impossible for Chinese corporations like SCIM to continue their technical projects until restrictions are lifted, which could be years. President-Elect Joe Biden hasn’t any plans to remove regulations implemented under the Trump Administration.