Semiconductor Manufacturing International Corporation (SMIC), a major global chip manufacturer, is reportedly among the businesses the Department of Defense intends to identify as being under the ownership or control of the Chinese military, according to a Reuters report. President Donald Trump previously signed an executive order earlier this month, scheduled to take effect on January 11th, which would prohibit U.S. investors from acquiring securities of firms included on the defense department’s restricted list.

In a communication to Reuters, SMIC stated that it remains “committed to positive and transparent dialogue with the U.S. government” and affirmed that it “maintains no connections to the Chinese military and does not produce components for military applications or users.”

As China’s leading semiconductor producer, SMIC accounts for approximately 4% of the global foundry market, as estimated by TrendForce, a market research company. Companies such as Qualcomm, Broadcom, and Texas Instruments have been among its clientele in the United States.

Currently, 31 companies are listed on the defense blacklist. Reuters reports that SMIC is one of four companies the Department of Defense is planning to include. The additional companies are China Construction Technology, China International Engineering Consulting Corp, and China National Offshore Oil Corp (CNOOC).

The company was removed from the New York Stock Exchange in May 2019, but explained that this decision was due to low trading volumes and substantial administrative expenses, and not related to the U.S.-China trade dispute or the U.S. government’s restrictions on Huawei and other Chinese technology firms.

SMIC is already facing challenges due to export controls that limit its ability to procure essential equipment from U.S.-based suppliers. In early October, the company informed its investors that export restrictions imposed by the U.S. Bureau of Industry and Security could potentially have “significant negative consequences” on its production capabilities.

The executive order, along with the potential expansion of the defense blacklist, aligns with the Trump administration’s firm approach toward Chinese technology companies, including Huawei, ZTE, and ByteDance, which it asserts pose a possible national security risk due to their purported links to the Chinese government and military. However, the continuation of many of the current administration’s policies following Joe Biden’s inauguration on January 20th remains unclear.

TechCrunch has reached out to SMIC seeking further information.