The US is preparing sanctions against a new company from China

The United States intends to blacklist the Chinese company SMIC, which is engaged in the production of semiconductor products, reports Reuters with reference to the official representative of the Pentagon.

It is noted that the US Department of defense is currently working with other agencies to determine whether to take concrete steps against another foreign manufacturer.

SMIC is a Chinese company engaged in the manufacture of microelectronics. According to Reuters, the company ranks second in the chip market in China after the industry leader, Taiwan Semiconductor Manufacturing.

According to the Agency, the official reasons for adding SMIC to the blacklist have not been announced. Still, Reuters, citing sources, writes that the US authorities are studying the company’s alleged links with the Chinese military.

According to another source, until the Pentagon officially announces the reason for its decision, SMIC’s relationship with the Chinese military “will be closely monitored.”