The US has restricted American firms from selling parts to a Chinese company over national security concerns.
The US Commerce Department said there was a “significant risk” that Fujian Jinhua could get involved in activities that may hurt US national security.
The move is the latest escalation in the Trump administration’s efforts to stop alleged intellectual property theft.
Other countries have also put limits on Chinese firms on security grounds.
The US Commerce Department said it would restrict the export of software and technology goods from American firms to Chinese chipmaker Fujian Jinhua.
“When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security,” US Commerce Secretary Wilbur Ross said in a statement.
He said that the restrictions on Fujian Jinhua – which makes memory chips and devices – would “limit its ability to threaten the supply chain for essential components in our military systems”.
US firms now require a licence to export to Fujian Jinhua.