China accuses US of 'bullying' after reports of sanctions on SMIC

China accused the US government of the “blatant bullying” of Chinese companies following reports that Washington would be imposing sanctions on chipmaker Semiconductor Manufacturing International Corp.

In a statement on Monday, the Chinese foreign minister also urged the Trump administration to stop oppressing foreign companies.

Plans for the new sanctions were reported on 4 September by Reuters, who said that the US Department of Defense might block American companies from providing goods and services to SMIC.

Days before, China had announced plans to become self-sufficient in semiconductors, despite which the ban under study could prove harmful for the company and the sector as it relies on US products to build the microchips.

Also according to Reuters, providers from manufacturers in countries such as The Netherlands or Japan, which have good relations with the US, could “shadow” the move and decide not to trade with SMIC.

Shares of SMIC fell by roughly a fifth on Monday, wiping off about £2.74bn from the firm's stock market value.

The sanctions could pose yet another headwind for US-China relations, which were already strained, especially after the sanctions already imposed on high tech Chinese companies like Huawei.