March 23, 2019

US Restrict Trade With Chinese Chip Maker Over Security Concerns

US Restrict Trade With Chinese Chip Maker Over Security Concerns


Security concerns have led the US to restrict American firms from selling parts to the Chinese backed firm, Fujian Jinhua.

The US Commerce Department said there was a ‘significant risk’ that Fujian Jinhua could get involved in activities that may hurt US national security.


This is the latest instance in Trump’s trade way against China in what the Chinese companies call ‘censorship.’ The Trump administration says it’s all targeted at protecting their companies from intellectual property theft.

Other countries have also put limits on Chinese firms on security grounds.

In this recent episode, the US Commerce Department has said it would restrict the export of software and technology goods from American firms to Chinese chipmaker Fujian Jinhua.


‘When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security,’ US Commerce Secretary Wilbur Ross said in a statement.

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Wilbur Ross went on to say the ban on Fujian Jinhua would ‘limit its ability to threaten the supply chain for essential components in our military systems.’

US firms now require a licence to export to Fujian Jinhua.


The decision follows allegations that the company stole intellectual property from US chipmaker Micron Technology, according to reports.

The move is likely to worsen the US/China trade war ongoing for months now.

It is also the latest in a series of actions restricting the trade of Chinese tech firms as a way to check China’s aggressive expansion in Tech.


Earlier this year, the US blocked China’s ZTE from doing business with US companies after it found it had violated US sanctions against Iran and North Korea.


The ban, which forced the firm to halt major operations, was lifted in July.



The US isn’t the only country bothered by security concerns from using Chinese tech. Other nations have also moved to check Chinese companies in other countries.


In August, the Australian government banned telecoms giants Huawei and ZTE from providing 5G technology for the country’s wireless networks.


The UK’s cyber-defense watchdog also warned that the use of ZTE’s equipment and services could pose a national security risk.

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