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China warns of 'necessary actions' if US escalates chip curbs
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China warns of 'necessary actions' if US escalates chip curbs
Nov 28, 2024 2:17 AM

Nov 28 (Reuters) -

China warned on Thursday it would take "necessary actions"

to protect Chinese firms if the U.S. escalated chip control

measures, following reports that the Biden administration could

unveil new export restrictions as soon as this week.

Last week, the U.S. Chamber of Commerce informed members

in

an email

that the Biden administration was considering adding as

many as 200 Chinese chip companies to a trade blacklist, which

would prevent most U.S. suppliers from shipping to them.

Asked about the report at a regular news conference on

Thursday, commerce ministry spokesperson He Yadong said China

"strongly opposes" what he said was the U.S. broadening the

concept of national security, and the "abuse" of control

measures targeting Chinese companies.

The U.S. has been tightening controls over

semiconductors amid fears that China could use advanced

technologies to strengthen its military.

"These actions severely disrupt the international

economic and trade order, destabilise global industrial

security, and harm the cooperative efforts between China and the

U.S., as well as the global semiconductor industry," He 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.

Bloomberg reported on Thursday that the Biden

administration was considering additional curbs on the sale of

semiconductor equipment and AI memory chips to China.

Citing people familiar with the issue, it said the

latest proposal would sanction fewer Huawei suppliers than

initially planned, notably excluding ChangXin Memory

Technologies, which is trying to develop AI memory chip

technology.

The proposal also targets two chip factories owned by

Semiconductor Manufacturing International Corp., Huawei's

partner, and more than 100 Chinese companies making

semiconductor manufacturing equipment, rather than the chips

themselves, according to the report.

Biden is due to leave office in January, and there are

concerns that President-elect Donald Trump's promise to

implement additional tariffs on China could trigger a trade war.

Trump

pledged

this week to impose an additional 10% tariff on all imports

from China, above any existing tariffs.

He accused Beijing of not doing enough to stop the flow

of illicit drugs into the U.S. from Mexico.

China's commerce ministry said on Thursday the tariffs

would not resolve U.S. internal issues.

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