The US government has announced sanctions banning the export of US products to China's largest semiconductor maker, SMIC, and has tightened its squeeze on Chinese companies competing in the high-tech field.
The U.S. Department of Commerce announced on the 18th that it will add SMIC, China's largest semiconductor maker, to the list that effectively bans the export of products from American companies.
The Commerce Department said SMIC has determined that products using American technology are being diverted to the country's military arena.
SMIC is central to China's strengthening of semiconductor domestic production.
The sanctions will make it impossible for SMIC to procure US-made semiconductor manufacturing equipment and parts, so the impact is expected to be unavoidable.
The Department of Commerce also announced that it has added more than 60 organizations to the same sanctions list, including Chinese companies involved in the creation of artificial islands in the South China Sea.
The Trump administration has tightened its squeeze on Huawei and other growing Chinese companies in the high-tech sector, but the focus will be on how strict the next President Byden will be on China.