The US Department of Commerce has added drone manufacturer DJI, which sells, SMIC chip maker and dozens of other Chinese companies on its list of entities on Friday.
Being added to the list restricts companies from exporting US technology without a license. Chinese telecommunications Huawei has been on the list since May 2019.
“Restrictions on the list of entities are a necessary measure to ensure that China, through its national SMIC champion, is not able to capitalize on US technologies to allow indigenous high-tech levels to sustain destabilizing military activities,” he said. Secretary of Commerce Wilbur Ross in a statement.
It is unclear why DJI was added, but Drone DJ suggested it was the result of the company’s reported work for the Chinese government.
Neither DJI, SMIC nor the Commerce Department responded immediately to requests for comment.