The US Commerce Department added drone maker DJI, which sells, chipmaker SMIC and dozens of other Chinese companies to its Entity List on Friday.
Being added to the list restricts companies from exporting US technology without a license. Chinese telecom Huawei has been on the list since May 2019.
“Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage U.S. technologies to enable indigenous advanced technology levels to support its destabilizing military activities,” Commerce Secretary Wilbur Ross said in a statement.
It’s unclear why DJI was added, but Drone DJ suggested it was a result of the company’s reported work for the Chinese government.
“DJI is disappointed in the U.S. Department of Commerce’s decision. Customers in America can continue to buy and use DJI products normally,” a company spokesperson said in an emailed statement. “DJI remains committed to developing the industry’s most innovative products that define our company and benefit the world.”
SMIC didn’t respond to a request for comment.