By David Lawder
WASHINGTON (Reuters) - Opening a new front in its trade and technology disputes with China, the Trump administration on Monday took action to cut off a Chinese state-backed semiconductor maker from U.S. exports of components, software and technology goods.
The Commerce Department said it has put Fujian Jinhua Integrated Circuit Co Ltd on a list of entities that cannot purchase such products from U.S. firms, citing a "significant risk" that the Chinese firm's new memory chip capacity will threaten the viability of American suppliers of such chips for military systems.
It said in a statement that Fujian Jinhua "poses a significant risk of becoming involved in activities that are contrary to the national interests of the United States."
The action is similar to a Commerce Department move that nearly put Chinese telecommunications equipment company ZTE (HK:0763) Corp (SZ:000063) out of business earlier this year by cutting it off from U.S. suppliers.