The US Department of Commerce has put SMIC, China's largest semiconductor foundry (consignment), and SZ DJI (Dajang) Technology, the world's largest drone manufacturer, on the trade blacklist.
According to Reuters, Commerce Minister Wilbur Ross made a statement on the Fox Business Network on the 18th local time.
There are 77 blacklisted companies and affiliates, of which 60 are Chinese, Reuters said.
The Ministry of Commerce said the action against SMIC was "in accordance with China's military-private fusion policy and evidence of activity between SMIC and Chinese military industrial complex-related enterprises."
This requires SMIC to obtain special permission from the U.S. Department of Commerce to import key components from U.S. suppliers in the future.
The U.S. Department of Defense recently classified SMIC as a company owned and controlled by the Chinese military and added it to the blacklist, limiting U.S. investors from buying shares of these companies from next November.
SMIC claims it has nothing to do with the Chinese military.
The Ministry of Commerce also explained that DJI, a Chinese drone manufacturer, was added to the list for widespread human rights violations in China through gene collection and analysis and abuse of advanced surveillance technologies.
In connection with the Reuters report, the Chinese Foreign Ministry urged the United States to "stop the misconduct of suppressing foreign companies."
Chinese Foreign Ministry spokesman Wang Won-bin said at a regular briefing that "China will continue to take necessary steps to defend the legitimate rights and interests of Chinese companies."