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30 Oct, 2018 09:30

Trump hits Chinese chipmaker with export ban, still expects ‘great deal’ with Beijing

Trump hits Chinese chipmaker with export ban, still expects ‘great deal’ with Beijing

The US Commerce Department has announced restrictions on exports to state-backed Chinese company Fujian Jinhua which makes semiconductors. The decision comes as the latest escalation in Washington's trade fight with Beijing.

The Chinese company will not be able to buy components from US companies without a special license, according to the department. It explained the ban was put in place because Fujian Jinhua “poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States.”

Commerce Secretary Wilbur Ross said: “When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security.”

He added the ban would limit the company's ability to “threaten the supply chain for essential components in our military systems.”

Earlier this year, the Trump administration put an export ban on ZTE, one of China's biggest tech companies. The firm was accused of lying to American officials about punishing employees who violated US sanctions against North Korea and Iran. The ban was lifted in July after ZTE paid a $1 billion fine and agreed to oversight measures.

The US and China are currently locked in a standoff over trade, market access and the transfer of technology secrets. So far, Washington has imposed tariffs on $200 billion of Chinese goods and Beijing retaliated with tariffs on $60 billion of US goods and stopped buying American oil.

READ MORE: US-China trade war could last 20 years, warns Jack Ma

US President Donald Trump said on Tuesday he thinks there will be “a great deal” with China on trade, but warned he has billions of dollars’ worth of new tariffs ready to go if a deal isn’t possible.

“I think that we will make a great deal with China and it has to be great, because they’ve drained our country,” Trump told FOX News.

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