China issued a stern warning on Thursday, pledging to take “necessary actions” to safeguard its firms if the U.S. proceeds with expanded semiconductor control measures. The statement followed reports that the Biden administration may announce new export restrictions as early as this week, potentially targeting hundreds of Chinese companies.
The U.S. Chamber of Commerce informed its members last week that the administration is considering blacklisting up to 200 Chinese chip firms. Inclusion on the list would significantly limit their access to American semiconductor technology, disrupting critical supply chains. This move aligns with the U.S.’s ongoing efforts to curtail China’s technological advancements, citing national security concerns and the risk of military applications.
At a press conference, Chinese commerce ministry spokesperson He Yadong criticized the U.S. for “abusing control measures” under the guise of security. He stated that such actions destabilize global trade and harm collaborative progress in the semiconductor industry. He added, “If the U.S. insists on escalating control measures, China will take necessary actions to resolutely protect the legitimate rights of Chinese enterprises.”
Reports from Bloomberg suggest that the Biden administration’s latest proposal includes restrictions on the export of advanced semiconductor equipment and AI memory chips to China. Specific targets are said to include Semiconductor Manufacturing International Corporation (SMIC) facilities and over 100 companies producing semiconductor manufacturing equipment. However, the plan reportedly excludes ChangXin Memory Technologies, which is advancing AI chip development, and scales back sanctions on some Huawei suppliers.
This development comes amid heightened tensions between the two economic powerhouses. President-elect Donald Trump’s recent pledge to impose a 10% tariff on all Chinese imports, alongside existing measures, has fueled concerns of a looming trade war. Trump attributed his decision to China’s insufficient efforts to curb the flow of illicit drugs into the U.S., adding another layer of contention to bilateral relations.
China’s commerce ministry dismissed the tariff plan, arguing that such measures would not resolve internal U.S. challenges. As semiconductor control measures tighten and trade disputes escalate, the global technology industry braces for further disruptions.
The escalating tensions between the U.S. and China over semiconductor restrictions highlight the fragility of global tech supply chains. While national security concerns drive U.S. policies, such measures risk fragmenting an industry built on cross-border collaboration. Striking a balance between security and cooperation is essential to prevent further disruption and maintain innovation in the semiconductor sector.
Featured image courtesy of Penn Today – University of Pennsylvania
Follow us for more tech news updates.