Chinese companies are being advised to avoid buying US-made chips and instead opt for local alternatives, as four top industry associations have warned of the “no longer safe” nature of US chip imports.
The move comes after the United States launched its third crackdown on China’s semiconductor industry in three years, curbing exports to 140 companies. The industry associations, covering major sectors like telecommunications, autos, and semiconductors, represent over 6,400 Chinese companies.
Their warning is seen as a rare coordinated response from Beijing, which has been escalating tensions with the US before President-elect Donald Trump’s return to the White House in January. Trump has promised heavy tariffs on imported Chinese goods, reviving a trade war from his previous term.
Industry experts say China had been slow to retaliate against US moves, but now it appears that the gloves are off. The Internet Society of China has urged domestic companies to think carefully before purchasing US chips and instead seek cooperation with chip firms from other countries.
The warnings highlight the impact of US chip export controls on China’s internet industry, which is “substantial,” according to one expert. Despite this, some US chipmaking giants like Nvidia, AMD, and Intel have managed to keep selling products in the Chinese market due to efforts to localize output.
Source: https://finance.yahoo.com/news/chinese-firms-diversify-chip-sources-101223516.html