The U.S. will not resume trade negotiation with China if the Chinese are not willing to address these issues. That figure quickly grew to $200 billion as the list of affected products was updated, and many have feared that the tariffs could lead to higher prices for tech products or even hinder the USA semiconductor industry (although we don't know for sure how tech products will be affected).
The Commerce Department appeared to side with Micron in its statement, claiming that the "likely US -origin technology" to be produced at the new Fujian plant would threaten "the long term economic viability of USA suppliers of these essential components of USA military systems".
The Chinese company was caught up in the legal battle between Micron and UMC.
The US is cutting off exports to a Chinese semiconductor maker, citing "significant risk" to national security.
U.S. Commerce Secretary Wilbur Ross said in a statement that the Chinese firm's new plant likely was the beneficiary of "U.S. -origin technology" and its additional production would threaten the long-term viability of U.S. chipmakers.
USA media say American semiconductor maker Micron Technology is suing the Chinese company.
"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security", he said.
ZTE Corp., China's second-biggest maker of telecoms equipment, faced possible bankruptcy this year after Washington imposed a seven-year ban on sales of USA technology to the company over its exports to Iran and North Korea. -Chinese tensions, along with a plan by the world's second largest economy to achieve supremacy in a plethora of future technologies.
Fujian Jinhua, based in China's Fujian province, was founded in 2016 and has financial backing from the provincial government. Micron executive vice president Manish Bhatia said on Friday, technology leaks were "definitely a concern".
He said suppliers such as Applied Materials Inc, Lam Research Corp and KLA-Tencor Corp were likely supplying equipment to Fujian Jinhua. It's building a $5.7 billion chip factory in the region. Such license applications will be reviewed but with a presumption of denial, the agency said.
Calls to Fujian Jinhua's offices rang unanswered Tuesday and there was no immediate response to an inquiry made through their website.