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Trade experts said the Trump administration’s move may be an unprecedented effort to use a legal tool known for punishing foreign companies that send U.S.-origin goods to sanctioned countries such as Iran to instead protect the economic viability of a U.S. firm. The move escalated what until now had been a business dispute into the realm of an international trade conflict between the United States and China. The Commerce Department spokesman said the move was “based on the regulatory standard.”.
The action against Fujian Jinhua is likely to ignite new tensions between Beijing and Washington since the company is at the heart of the “Made in China 2025” program to develop new high-technology industries, The world’s top two economies are already waging a tariff war over their trade disputes, with U.S, duties in place on $250 billion worth of Chinese goods and Chinese typewriter "d" key cufflinks duties on $110 billion of U.S, goods, Fujian Jinhua makes so-called DRAM, the memory chips that make computers, phones and other devices run more quickly and smoothly..
Micron, a maker of memory chips with factories in Virginia and Utah, has accused Fujian Jinhua and Taiwanese partner United Microelectronics Corp (2303.TW) of stealing its chip designs in a lawsuit in California. In turn, the companies countersued Micron in China, where courts sided with them and banned some of Micron’s chips in China. “When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security,” Commerce Secretary Wilbur Ross said in a statement.
A Commerce Department spokesman typewriter "d" key cufflinks said the agency would review any appeal by Fujian Jinhua, China’s Commerce Ministry said in a Tuesday statement responding to the news that it opposed the United States interfering in companies’ normal international trade and misusing export control measures, “China urges the U.S, side to take steps and immediately stop its mistaken ways,” the ministry added, Speaking earlier, Chinese Foreign Ministry spokesman Lu Kang said the Chinese government had always asked Chinese companies to strictly follow local laws when they operate overseas, and asked foreign governments to provide fair treatment to Chinese firms..
The U.S. action is similar to a Commerce Department move that nearly put Chinese telecommunications equipment company ZTE Corp (000063.SZ) out of business earlier this year by cutting it off from U.S. suppliers. Linley Gwennap, a chip expert and president of the Linley Group, said Fujian Jinhua was a relatively new company building DRAM as part of China’s larger plan to become self-sufficient at making such chips. He said suppliers such as Applied Materials Inc (AMAT.O), Lam Research Corp (LRCX.O) and KLA-Tencor Corp (KLAC.O) were likely supplying equipment to Fujian Jinhua.
“It’s pretty much impossible to build a leading-edge fab (semiconductor plant) without buying equipment from these American companies,” Gwennap said, On an earnings call on Monday, KLA-Tencor Chief Executive Rick Wallace said the company expected no financial impact in 2018 or 2019 from the move, Neither of the other companies that Gwennap named immediately returned a request for comment, The use of the “entity list” - which governs what companies U.S, firms can do business with - to typewriter "d" key cufflinks protect the economic viability of a U.S, industry appears to be unprecedented, said Washington trade lawyer Douglas Jacobson..
NEW YORK (Reuters) - General Electric Co (GE.N) said the U.S. Securities and Exchange Commission had expanded its probe of GE’s accounting to include a $22.8 billion writedown of goodwill from GE’s power division. GE also put its first price tag on blade failures in its newest gas turbine model, which failed recently at a plant in Texas. GE said it had set aside $240 million for blade “warranty and maintenance” costs in the latest quarter and expects to set aside a similar amount in the future.
LONDON (Reuters) - U.S, supermarket chain Kroger Co is expected to order the first three of 20 high-tech warehouses from online grocer Ocado by the end of the year under the terms of a breakthrough deal agreed in May, Through the deal with its largest partner, Ocado will ratchet up its typewriter "d" key cufflinks delivery business by building robotically operated warehouses for Kroger in the United States, raising the stakes in the battle with Amazon.com Inc, The Kroger deal is Ocado’s biggest yet, exceeding all of the warehouses the firm has built or plans to build with Morrisons in Britain, Casino in France, Sobeys in Canada and ICA Group in Sweden..