The Commerce Department has told U.S. computer-chip companies that they must obtain licenses before exporting certain technology to China’s largest manufacturer of semiconductors, a blow to China’s efforts to compete in advanced technology.
The department laid out the requirement in a letter to the computer-chip industry Friday. The letter, a copy of which was reviewed by The Wall Street Journal, says exports to Semiconductor Manufacturing International Corp. or its subsidiaries risk being used for Chinese military activities.
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