China was engaged in a form of economic espionage that he described as "rob, replicate and replace" - giving the example of a Chinese wind turbine firm that was found guilty in the USA of stealing from a U.S. competitor before going on to sell worldwide while the United States firm lost shareholder value and fired staff.
The Chinese Communist Party has more than 90 million members, effectively making the State Department visa action the Trump administration's most sweeping and direct attack on the party.
Director of National Intelligence John Ratcliffe beseeched any incoming Biden administration on Thursday to "get past politicizing intelligence" and admit China, not Russian Federation, is the greatest security the United States faces. "China robs USA companies of their intellectual property, replicates the technology and then replaces the US firms in the global marketplace".
Trump administration officials have been stepping up their anti-China rhetoric for months, especially during the presidential campaign as President Donald Trump sought to deflect blame for the spread of the coronavirus.
On the campaign trail, Mr Trump warned that Mr Biden would go easy on China, although the president-elect agrees that China is not abiding by worldwide trade rules, is giving unfair subsidies to Chinese companies and stealing American innovation.
He also charged that China had stolen United States defense technology to fuel an aggressive military modernization plan launched by President Xi Jinping.
China's embassy in the USA did not respond to a request for comment on Ratcliffe's op-ed, although China has routinely denied many of these allegations in the past.
The move comes after President Donald Trump said in an executive order in November that China is increasingly exploiting US capital to enable the development and modernization of its military.
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Mr Ratcliffe, a Trump loyalist who has been accused of politicising the position, has been the nation's top intelligence official since May.
Sino-US relations have hit rock bottom after outgoing President Trump's disputes with Beijing over issues ranging from trade to Hong Kong to the pandemic.
Some damage to Sino-US ties are "beyond repair" amid a new wave of Trump administration measures to counter China, Chinese state media warned.
In a stock market statement, SMIC said it strongly opposed the decision, which reflected a fundamental misunderstanding by the USA administration of the end-uses of its business and technology.
"This generation will be judged by its response to China's effort to reshape the world in its own image and replace America as the dominant superpower", Mr Ratcliffe wrote.
Separately, a justice department official said more than 1,000 suspected Chinese agents had fled the US.
Semiconductor Manufacturing International Co. and China National Offshore Oil Corp. were among the four additions to the U.S. Defense Department's list of "Communist Chinese military companies" on Thursday night.
William Evanina, the director of the National Counterintelligence and Security Center, said Wednesday that Chinese foreign influence efforts have pivoted since the election to target members of the incoming administration of President-elect Joe Biden.
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