The U.S. government blacklists two Chinese companies, is SMIC wronged?

According to the latest news from Reuters, ON December 3, local time in the United States, the Trump administration added SMIC and CNOOC to its blacklist of so-called “Chinese military enterprises”, Reuters said. May escalate U.S.-China tensions before President-elect Joe Biden takes office.

The U.S. government blacklists two Chinese companies, is SMIC wronged?

Screenshot from Reuters website

In addition, the U.S. Department of Defense has identified two other companies as “enterprises owned or controlled by the Chinese military,” including China Construction Technology Corporation (CCTC) and China International Engineering Consulting Co., Ltd. (CIECC).

So far, the Trump administration has sanctioned 35 Chinese companies involved in the military.

SMIC denies “military involvement”

As early as September 5, there was news that SMIC would be put on a trade blacklist by the Trump administration.

After the news came out, in order to appease the capital market and other purposes, SMIC quickly made a targeted response, stating that all of its legal and compliant operations had “nothing to do with the Chinese military” and that “in 2016 and before. , SMIC is also officially recognized by the US Department of Commerce as a “Validated End-User”.

SMIC responded to the “Entity List” report, screenshots from SMIC’s WeChat public account

In fact, those who pay attention to SMIC will find that, at least in public channels or on the surface, SMIC seems to be particularly concerned about the compliance of its own business activities, and even in the context of the patriotic enthusiasm of a large number of Chinese compatriots, it also expresses that it is impossible to publish The goods are Huawei, which has led to some bad comments.

However, although SMIC has repeatedly emphasized its own civilian attributes and is not “involved in the military”, SMIC later announced that it was sanctioned by the U.S. Department of Commerce, which also forced it to face a lot of business troubles in the future. Affected by the sanctions, some U.S. equipment, accessories and raw materials exported by upstream suppliers to SMIC can only continue to supply to SMIC after applying for an export license in advance.