US considers blacklisting China tech firm SMIC – CNBC
US is reportedly mulling imposing controls on China’s state-owned Semiconductor Manufacturing International Corporation (SMIC).
Additional details
The firm is key player in China's effort to boost its domestic semiconductor industry.
Imposing export controls on SMIC would impact US companies that sell chip-making technology to China manufacturers.
The administration’s move is part of a continued effort to put pressure on China’s technology firms.
A Defense Department spokesperson said, “DoD is currently working with the interagency in assessing available information to determine if SMIC’s actions warrant adding them to the Department of Commerce’s Entity List.”
“We have no relationship with the Chinese military. Any assumptions of the Company’s ties with the Chinese military are untrue statements and false accusations,” SMIC responded.
Market reaction
The above report is likely to add to the risk-off market mood, as the Sino-American tech tensions escalate.
However, the Chinese proxy, the aussie dollar stands resilient, with AUD/USD adding 0.19% to trade near 0.7290, at the press time.
S&P 500 futures turn positive near the 3420 region.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
