US Limits Tech Exports to Fujian Jinhua Integrated Circuit Company
October 31, 2018
October 30, 2018, the Department of Commerce has taken action to
restrict exports to Fujian Jinhua Integrated Circuit Company, Ltd. (Jinhua)
by adding them to the Entity List (Supplement No. 4 to Part 744 of the
Export Administration Regulations (EAR)), because Jinhua poses a
significant risk of becoming involved in activities that are contrary to
the national security interests of the United States.
Jinhua is nearing completion of substantial production capacity for
dynamic random access memory (DRAM) integrated circuits. The additional
production, in light of the likely U.S.-origin technology, threatens the
long term economic viability of U.S. suppliers of these essential
components of U.S. military systems.
“When a foreign company engages in activity contrary to our national
security interests, we will take strong action to protect our national
security. Placing Jinhua on the Entity List will limit its ability to
threaten the supply chain for essential components in our military
systems,” Secretary of Commerce Ross said.
to Section 744.11(b) of the EAR, the Entity List identifies entities
reasonably believed to be involved, or to pose a significant risk of
being or becoming involved, in activities contrary to the national
security or foreign policy interests of the United States. The EAR
imposes additional license requirements on, and limits the availability
of most license exceptions for, exports, re-exports, and transfers
(in-country) to listed entities.
As a result of adding Jinhua to the Entity List, a license is required
for all exports, re-exports, and transfers of commodities, software and
technology subject to the EAR to Jinhua. Such license applications will
be reviewed with a presumption of denial.