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| China announces its position on possible restrictions on SMIC |
China launched an attack on the US government over potential export restrictions on SMIC, the largest US chip maker.
The US Department of Defense said: The United States plans on Saturday to add the minimum wage to the US Department of Commerce entity list, which will make it difficult for the company to manufacture parts in the states. The unit that can affect production.
On Monday, Chinese Foreign Ministry spokesman Zhao Lijian accused Washington of "overt domination," adding that Beijing "strongly opposes" such actions.
"China has officially talked about the insufficient US oppression of Chinese companies," Zhao told reporters. . ''
He also said: "What the United States did has made the fig leaf the free market economy and fair competition that the United States promoted." It also harms national interests and the image of the United States. ''
US officials have long argued that Chinese technology companies pose a national security risk. For example: Huawei was added to the list of companies last year, which seriously affected the international business of the telecom giant. ByteDance is also forced by the government to sell its business in the US through the popular TikTok app.
"The Department of Defense is currently working with joint agencies to assess the information available to determine whether SMIC measures should be added to the Commerce Department's list of companies," a Pentagon spokesman said Saturday. "Such measures will ensure that all exports at minimum wages are subject to a full review." ''
President Donald Trump's administration is said to be concerned about minimum wage aid for the Chinese military. SMIC denied this statement on Saturday, describing the allegations as "false statements and false allegations."
If the United States includes minimum wages on its list of companies, it could exacerbate the tense trade war. Because there are few or sometimes no alternatives to U.S. coins, they can have a lot of difficulty developing or caring for their plants.
This, in turn, can annoy customers like Huawei and other tech giants. China could extend its retaliation and harm US companies that rely on Chinese-made products and parts.
China attaches great importance to the development of the domestic semiconductor industry, and this initiative has gained momentum in the trade war with the United States. However, the minimum wage is lagging behind its technological competitors such as TSMC of Taiwan and Samsung of South Korea.