Another Chinese technology firm has clashed with the US government over allgeded intellectual property theft, this time leading to a ban from doing business with American companies.
The US Commerce Department has said it will ban US firms from supplying state-linked semiconductor startup Fujian Jinhua Integrated Circuit Co, the Wall Street Journal reports.
The action was taken after California-based Micron Technology filed a lawsuit in December accusing Jinhua of stealing its tech secrets, sparking a counter-filing by Jinhua in a court in China’s Fujian province.
“Jinhua poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States,” the Commerce Department wrote in a statement.
China is currently running a campaign to boost its technological independence, particularly in the field of semiconductors, after its reliance on foreign imports was highlighted following the US’s decision to sanction telecom giant ZTE earlier this year.
This latest move has the potential to similarly cripple Fujian Jinhua, which despite significant financial backing from Beijing is still reliant on US technologies.