China’s top four industry associations issued a joint statement advising Chinese companies to avoid purchasing U.S. chips, citing them as “no longer safe.” Instead, they encouraged the use of domestically produced chips. This announcement comes amidst escalating economic tensions between China and the U.S., as reported by Reuters.
The statement aligns with a period of intensified economic measures between the two nations. Recently, the U.S. imposed its third set of restrictions on China’s semiconductor industry within three years, targeting 140 Chinese companies. This move could potentially impact major U.S. chipmakers like Intel, NVIDIA, and AMD.
In response, the Chinese Internet Society recommended local and foreign alternatives to U.S. chips, labeling American semiconductors as unreliable. The U.S. Semiconductor Industry Association countered these claims, describing the allegations against American chip security as baseless.
Additionally, China has imposed a ban on exporting rare minerals critical for military applications, solar panels, and fiber optics. The White House has criticized this action, stating it would take necessary steps to counter China’s “coercive measures.”
Analysts predict that these reciprocal restrictions on semiconductors and rare minerals could significantly disrupt global technology supply chains.
