New York (CNN Business) The United States is restricting exports to a state-backed Chinese company that makes semiconductors, the latest escalation in Washington's trade fight with Beijing.

On Monday, the US Commerce Department said Fujian Jinhua Integrated Circuit Company would not be able to buy components from American companies without a special license.

The export ban was put in place because Fujian Jinhua "poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States," the agency said.

"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security," Commerce Secretary Wilbur Ross said in a statement.

Ross said the ban will limit the company's ability to "threaten the supply chain for essential components in our military systems."

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