China opposes US unilateral sanctions against Chinese firm
Xinhua
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BEIJING, Oct. 30 (Xinhua) -- China's Commerce Ministry late Tuesday expressed opposition to the US imposition of unilateral sanctions against a Chinese firm, urging the country to immediately stop its wrong practice.

The statement was made after the US Department of Commerce on Monday decided to restrict exports to China's Fujian Jinhua Integrated Circuit Company by adding it to the "Entity List."

China opposes the US acts of generalizing the concept of national security and abusing export control measures, and opposes the US acts of imposing unilateral sanctions and interfering in enterprises' normal international trade and cooperation, a spokesperson of the ministry said.

China urges the US side to take measures and immediately stop the wrong practice, facilitate and promote normal international trade and cooperation between companies of the two countries and protect their legitimate rights and interests, the spokesperson said.

The restrictions, which took effect on Tuesday, came as China and the US remain locked in a prolonged trade dispute, with additional tariffs imposed on a wide range of products from each other.

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Technicians debug an intelligent electric transducer made by Fujian Jinhua Integrated Circuit Co Ltd in Fujian Province, on July 9, 2018. (Photo/Xinhua)

The decision also comes amid China's ongoing push to beef up its ability to make high-end chips in the hope of reducing reliance on key foreign technologies.

Wang Yanhui, secretary-general of the Mobile China Alliance, said the move is the latest example of how the US leverages national security concerns as an excuse to protect its homegrown technology industry, and it is used by the US to gain more bargaining power for negotiations amid a mounting trade dispute.

"The restriction is protectionism, and out of concern that Chinese competition could threaten American companies. But in fact, a wide technology gap still exists between the two countries in semiconductors. The US is leveraging its current technological prowess to corner Chinese players," Wang added.

Jinhua has invested 37 billion yuan ($5.7 billion) in a memory-chip plant-essential components for smartphones and personal computers. The company is in a legal dispute with its main competitor, US chipmaker Micron Technology Inc, a major supplier of the US military.

Jinhua did not immediately respond to requests for comment.

Earlier this year, Chinese telecom equipment maker ZTE Corp was also blocked from accessing US technology over its exports to Iran. The ban was later lifted after ZTE paid huge fines to the US government and replaced its executive team.

Roger Sheng, research director at market research company Gartner Inc, said the new restriction is hurting the global supply chain by adding uncertainties and anxiety to the industry.

"Now, the US can do whatever it wants to protect its companies. Anyone can be the next target after Jinhua … US companies also feel worried over future business because they have made huge profits by selling semiconductor technology, material and components to China."

China is the world's largest semiconductor market. Its annual chip imports totaled more than $200 billion in recent years.

(With input from China Daily)