China Warns It Will Take 'Necessary Measures' If the U.S. Escalates Chip Restrictions

Foreks - China warned that it will take "necessary measures" to protect Chinese firms if the U.S. increases its chip control measures following reports that the Biden administration may announce new export restrictions this week.

The U.S. Chamber of Commerce informed its members in an email last week that the Biden administration is considering adding around 200 Chinese chip companies to its trade blacklist, which would prevent most U.S. suppliers from shipping to these companies.

Commerce Department spokesperson He Yadong stated that China "strongly opposes" the U.S. expanding its national security concept and the "abuse" of control measures targeting Chinese companies. He said, "These actions severely disrupt the international economic and trade order, destabilize global industrial security, and harm cooperation efforts between China and the U.S. If the U.S. insists on increasing its control measures, China will take necessary steps to firmly protect the legitimate rights of Chinese businesses."