In a rare coordinated move, four of China’s top industry associations have advised domestic companies to avoid purchasing U.S. semiconductor products, warning that they are no longer “safe” and encouraging the shift towards local alternatives.
This warning comes amid escalating tensions between China and the United States, following the U.S. government’s third crackdown in three years on China’s semiconductor industry.
The move affects over 140 companies, including Naura Technology Group, a prominent chip equipment maker.
The latest curbs on chip exports add to an already strained economic relationship, with the U.S. imposing measures on Chinese companies to curb China’s growing technological advancements.
In response, Chinese industry groups, covering sectors like telecommunications, digital economy, and automotive, have raised concerns over the reliability of U.S. chips in the face of ongoing export controls.
The associations emphasized the potential risks of depending on foreign products that might be subject to further restrictions.
While the U.S. Semiconductor Industry Association has pushed back against these claims, stating that the American chips are still safe and reliable, it remains clear that both nations are stepping up economic and technological measures to counter each other’s influence.
U.S. chipmakers like Intel and Nvidia face challenges as China seeks alternatives.The U.S. trade group reiterated that the export controls should remain targeted and specific to national security interests, and called for both governments to avoid further escalation.
The tensions between the two nations have intensified following U.S. President-elect Donald Trump’s vow to impose heavy tariffs on Chinese goods once he returns to office in January.
This renewed trade war threatens to reshape the semiconductor landscape, particularly for companies like Nvidia, AMD, and Intel, which have managed to maintain sales in China despite existing export restrictions.
The escalating conflict is already having a significant impact on China’s internet industry, which has experienced substantial harm due to U.S. chip export controls.
As Beijing continues to take retaliatory measures, including banning the export of rare minerals essential for military applications, the technological rivalry between the U.S. and China shows no signs of cooling down.