China warns of “necessary actions” if US escalates tech curbs
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The news: China warned it would take "necessary actions" to protect its companies if the US escalates chip curbs, following reports the Biden administration was weighing additional export restrictions on sales of semiconductor equipment and AI memory chips.
The context: Bloomberg on Thursday cited sources saying the US government could soon unveil new restrictions that would escalate the US crackdown on Beijing’s technological ambitions but stop short of some stricter measures previously considered.
The publication said the new restrictions would target fewer Huawei suppliers than initially planned, with a notable exclusion of ChangXin Memory Technologies, which is trying to develop AI chip technology.
It comes after intense lobbying from American chip equipment makers that warned the tougher measures, which could be unveiled as soon as next week, would hurt their businesses.
The US has targeted Chinese tech amid fears it could use advanced technologies to strengthen its military. But US President-elect Donald Trump’s announced this week a blanket 10% tariff on all Chinese imports, above any existing levies, until it stops the flow of drugs, particularly fentanyl, into the US.
The proposed rules under consideration would impose sanctions on two chip factories owned by Semiconductor Manufacturing International, which partners with Huawei in chipmaking, the paper said. A number of chip factories and over 100 Chinese companies making semiconductor manufacturing equipment are also under consideration.
Asked about the report at a news conference, commerce ministry spokesman He Yadong said China "strongly opposes" the "abuse" of control measures targeting Chinese companies.
What they said: "These actions severely disrupt the international economic and trade order, destabilise global industrial security, and harm the cooperative efforts between China and the US, as well as the global semiconductor industry," the commerce ministry spokesman said.
"If the U.S. insists on escalating control measures, China will take necessary actions to resolutely protect the legitimate rights of Chinese enterprises," he added.
