Some Commerce Department officials are trying to block the
Defense Department's proposal, the Journal added, citing people familiar with
the matter.
Semiconductor Manufacturing International Corp (SMIC) was
added to a U.S. blacklist last year that denies it access to advanced
manufacturing equipment from U.S. suppliers due to its alleged ties to China's
military, claims that the company rejects.
SMIC, China's largest contract chipmaker, did not
immediately respond to a request for comment on the report.
In the coming months, U.S. officials are also considering
adding more Chinese technology companies to the Commerce Department's entity
list and to the Treasury list banning U.S. investment, the Journal added.
On Wednesday, the U.S. House of Representatives passed
legislation to ban imports from China's Xinjiang region over concerns about
forced labor.
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