The US put SMIC, one of China’s most important processor manufacturer companies, on the embargo list, on the grounds that it cooperates with Chinese military institutions.
Are these companies military companies?
After the move by the Department of Defense, SMIC is now on the list of US military enemies and US companies that will work with SMIC will need to obtain special permission from the US administration.
According to the US Department of Defense, civilian companies such as SMIC are being used militarily by the Chinese administration to modernize the Chinese army. Therefore, the company may appear civil, but it is emphasized that it works for military purposes.
Of course, it is also known that the USA uses this excuse to harm Chinese companies that compete against US companies. So it’s going to get messed up again. The US has previously done this to powerful Chinese competitors who are squeezing Apple, including Huawei and ZTE.