The limits announced Monday reflected official concern Chinese competition might drive some American technology suppliers out of business and leave the United States without sources of components needed by the military. The Trump administration has slapped billions of dollars in tariffs on Chinese imports, claiming the country is stealing USA technology. Earlier this year the U.S.
"Jinhua is nearing completion of substantial production capacity for dynamic random access memory (DRAM) integrated circuits".
The action is similar to a Commerce Department move that almost put Chinese telecommunications equipment company ZTE Corp out of business earlier this year by cutting it off from USA suppliers.
However, that production "threatens the long term economic viability of United States suppliers of these essential components of United States military systems", the Commerce Department said.
Commerce says "The move is likely futile as such license applications will be reviewed with a presumption of denial".
However, the Commerce Department's export ban could end up limiting the Chinese company's development.
ZTE, which failed to comply with stipulations after violating the sanctions placed on Iran and North Korea, was allowed to resume purchases of USA products after a revised settlement and payment of a $1 billion fine.
Calls to Fujian Jinhua's offices rang unanswered Tuesday and there was no immediate response to an inquiry made through their website.
The ban, which became a flashpoint between the two nations, was lifted in July after ZTE paid a $1 billion fine and agreed to oversight measures. He has imposed tariffs on a $250 billion list of Chinese exports.
But the restriction of exports to Fujian Jinhua actually relates to a much older problem: Accusations of Chinese businesses stealing American trade secrets to shift the balance sheets (and balance of power) in their favor. Micron went to the federal district court of northern California to accuse UMC of hooking up with Jinhua to build a DRAM lab, and headhunting Micron staff (who brought intellectual property with them, Micron alleged) to run it.