China Threatens Sanctions Against US Companies Over Chip Restrictions

China has threatened to impose sanctions on companies that comply with US restrictions on its homegrown technology, citing a violation of international trade law. The Chinese Commerce Ministry claimed the US industry guidance aimed to “ban Chinese advanced-computing chips globally”. Beijing criticized Washington for targeting Huawei, a state-linked enterprise leading China’s high-end semiconductor research and development.

The move comes after the US Commerce Department said Huawei’s chips were likely developed in violation of US export controls. Despite being under threat from US restrictions, Huawei is advancing its indigenous chipmaking capabilities. Chinese AI firms may rely on Huawei’s technology to power their machine models, adding to the tech war’s national security implications.

China urged the US to correct its wrong practices and abide by international trade rules, but it appears the issue of high technology has become a nonnegotiable for both sides in wider US-China trade talks.

Source: https://www.newsweek.com/china-us-sanctions-huawei-technology-business-countermeasures-2075273