Other affected Chinese entities include those "that enable human rights abuses, entities that supported the militarization and unlawful maritime claims in the South China Sea, entities that acquired USA -origin items in support of the People's Liberation Army's programs, and entities and persons that engaged in the theft of US trade secrets", according to the US government statement. The success of the Phantom 3 landed SZ DJI to be the largest consumer drone company in the world during that time.
Commerce Secretary Wilbur Ross said that China has taken advantage of American technology for its military modernization, but it will not happen now.
The U.S. has "abused" export controls to suppress enterprises, institutions and individuals of other countries, China's Ministry of Commerce said in a statement on Saturday.
The U.S. -imposed restrictions might impact SMIC's production that requires advanced technology.
Last month, the US government reportedly added SMIC to its defense blacklist, which would bar American investors from buying securities from the company.
"Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage USA technologies to enable indigenous advanced technology levels to support its destabilizing military activities".
The Trump administration, meanwhile, appears intent on thwarting China's moves to acquire such capabilities, before it leaves office.
However, the US government also cited past concerns regarding security with and of the drones - which are largely built in China and contain numerous Chinese-made parts.
SMIC and the other companies did not immediately comment.
The listing is expected to affect the firm's ability to acquire parts that use U.S. technology.
One of the major companies affected by these actions is Huawei, the Chinese technology giant.
In September, the Commerce Department mandated that suppliers of certain equipment to the company apply for export licenses after concluding there was an "unacceptable risk" that equipment supplied to it could be used for military purposes.
Separately, US lawmakers this month opted not to ban the purchase of Chinese drone technology by USA agencies as part of an annual defense bill.
The official added that the USA had evidence SMIC had worked with the Chinese military on short and medium-range ballistic missiles, and exoskeletons for soldiers.
The blacklisting of China's leading semiconductor manufacturer comes while the US Defense Department is looking to bolster the industry.