China warned on Thursday that it would take “necessary measures” to protect Chinese companies if the US tightens chip controls, following reports that the Biden administration could announce new export restrictions as early as this week.
Last week, the US Chamber of Commerce informed members by email that the Biden administration was considering adding up to 200 Chinese chip companies to a trade blacklist, which would bar most US suppliers from shipping to them.
Asked about the report at a press conference on Thursday, Commerce Ministry spokesman He Yadong said China “strongly opposes” what he sees as US moves to expand the concept of national security, as well as “abuse” of control measures targeting Chinese companies.
The US has tightened controls on semiconductors out of concern that China may use advanced technology to strengthen its military.
“These actions disrupt the international economic and trade order, threaten global industrial security, and damage the cooperative efforts between China and the US, as well as the global semiconductor industry,” He said.
“If the US insists on increasing controls, China will take necessary measures to more firmly protect the rights of Chinese companies,” he added.
Bloomberg reported on Thursday that the Biden administration is considering additional restrictions on the sale of semiconductor equipment and AI memory chips to China.
According to the sources, the latest proposal would target fewer Huawei suppliers than initially planned, specifically excluding ChangXin Memory Technologies, which is working on developing AI memory chip technology.
The proposal also targets two chip factories owned by Huawei’s partner Semiconductor Manufacturing International Corp., as well as more than 100 Chinese companies that produce semiconductor manufacturing equipment, rather than the chips themselves, the report said.
Biden is expected to leave office in January, and there are concerns that President-elect Donald Trump’s promise to impose additional tariffs on China could spark a trade war.
Trump vowed this week to impose an additional 10% tariff on all imports from China, on top of existing tariffs.
He has accused Beijing of not doing enough to stop illegal drugs entering the US from Mexico.
China's commerce ministry on Thursday said the tariffs would not resolve US internal issues.