The Wall Street Journal reported on Thursday that US officials are considering discussing a Defense Department proposal this month to close regulatory loopholes that have allowed Chinese chipmaker SMIC to purchase critical US technology.
According to the Journal, some Commerce Department officials are attempting to block the Defense Department’s proposal, citing people familiar with the situation.
Due to its alleged ties to China’s military, Semiconductor Manufacturing International Corp (SMIC) was added to a US blacklist last year, denying it access to advanced manufacturing equipment from US suppliers, which the company denies.
A request for comment on the report was not immediately returned by SMIC, China’s largest contract chipmaker.
According to the Journal, US officials are considering adding more Chinese technology companies to the Commerce Department’s entity list and the Treasury Department’s list of companies that are prohibited from receiving US investment in the coming months.
The United States House of Representatives passed legislation on Wednesday prohibiting imports from China’s Xinjiang region due to fears of forced labor.