Chinese semiconductor maker says it has ‘no relationship’ with military as US mulls restrictions

The top Chinese manufacturer of semiconductors is denying a connection to the Chinese military amid reports the U.S. may slap it with export controls.

American regulators are considering placing Semiconductor Manufacturing International Corp. on a list of foreign buyers that require special permission to acquire components or technology, The Associated Press reported.

As U.S. officials analyze whether the company is involved in military technology development, the firm issued a statement denying it.

“We have no relationship with the Chinese military,” the company said in a statement, saying that its products are “solely for civilian and commercial end-users and end-uses.”

The company added that they wished to clear up any “potential misunderstandings” with Washington, adding that it is “open to sincere and transparent communication,” according to the AP.

The U.S. has imposed similar access restrictions on U.S. components for China’s Huawei Technologies, one of the biggest network equipment and smartphone manufacturers. In response, companies such as Huawei are developing processor chips and similar components domestically, but the factories producing them typically require American technology.

SMIC has claimed the agency in charge of export controls has granted them “validated end-user status.” This status gives Chinese companies freedom to export U.S. tech without securing a license for each new shipment, according to the AP.