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The announcement by Beijing's Commerce Ministry on Tuesday could intensify the economic rivalry between the two powers and their respective supply chains.
In a response to Washington's curbs on Chinese chipmakers, Chinese industry groups have now warned companies from buying U.S. chips as they are "no longer safe". They are promoting local manufacturers and suggested buying locally. The two nations have targeted each other's economies in the last few days, escalating tensions even before the U.S. President-elect Donald Trump returns to the White House in January. Trump has promised to impose heavy tariffs on imported Chinese goods, reviving a trade war from his first four-year term as president.
The move is China's reply to the U.S. trade restrictions which banned exports of gallium, germanium, and other high-tech materials essential for advanced manufacturing and military technology. China has explicitly decided to target crucial materials for the production of semiconductors, mobile devices, solar panels, and defense systems.
The claims come as both nations continue to decouple their supply chains, seeking to fortify their technological independence. The U.S. has aggressively pushed to curtail China’s access to critical technologies, including semiconductors, by imposing export controls and fostering alliances with chip-making nations like Japan, South Korea, and the Netherlands.
The China Association of Automobile Manufacturers criticized Washington's actions, stating they undermine international trade norms. "This behavior blatantly violates market economy laws and the principles of fair competition, disrupting the global economic and trade order," the group said in a statement.
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