US imposes new sanctions on Chinese chip manufacturer citing security concerns: Report

The United States has imposed new sanctions on imports to Chinese computer chips maker Semiconductor Manufacturing International Corporation (SMIC). The sanctions imposed by the US Department of Commerce on imports to SMIC is based on the "unacceptable risk" that the company can pose if its products were used by the Chinese military. The sanctions are the latest by the Trump administration to restrict Chinese technology firms from doing business in the United States. 

Read: Huawei Chief Vows To Strengthen Supply Chain Amid Restrictions From US

According to Bloomberg, the companies will have to apply for a license in order to trade with SMIC. The restriction is similar to that imposed on Chinese mobile manufacturer by the United States. US firms need to apply for a license to ship products to Huawei. Meanwhile, the Chinese chipmaker has dismissed allegations of supplying products to the People's Liberation Army (PLA) and further added that it does not manufacture ny military-grade goods. 

Read: US Sanctions On Huawei Hit Chip Supply And Growth, Exec Says

US targeting Chinese tech firms

The United States has already targetted various other Chinese companies such as Huawei, ByteDance-owned TikTok, WeChat over security concerns. Trump signed an executive order on August 6 which stated all citizens and businesses in the country were to be banned from indulging in any transactions or deals with TikTok, Bytedance, and WeChat in 45 days from the signing. On August 14, Trump signed another order giving time to ByteDance to divest TikTok within 90 days and hand over control of operations to an American firm. 

Read: US Judge Issues Temporary Stay On Trump's TikTok Ban Hours Before It Was To Go Into Effect

Earlier, the US Department of Justice had indicted Huawei for stealing US technology, conspiracy, wire fraud, bank fraud, racketeering, and helping Iran to evade sanctions, amongst other charges. The US has been constantly lobbying against Huawei in ally nations, including the United Kingdom and the European Union, to prevent the Chinese network from setting up 5G network bases in their countries.

Read: China Accuses Trump Administration Of 'abusing' Power By Trying To Ban TikTok