[WORLD] China has pledged to retaliate against Washington’s latest efforts to block Chinese-manufactured semiconductors, warning that enforcement of the proposed guidelines could lead to legal consequences.
In a statement issued Wednesday, China’s Ministry of Commerce slammed the U.S. restrictions as “unilateral bullying and protectionism,” denouncing them as a violation of international norms.
The warning marks a new flashpoint in the ongoing technology standoff between the two countries. The Biden administration has recently intensified controls on advanced semiconductor exports, citing national security risks. In October, the U.S. Commerce Department expanded its restrictions to cover state-of-the-art artificial intelligence chips and chipmaking equipment—further exacerbating tensions with Beijing.
“The U.S. has misused export controls to suppress China’s development,” the ministry said. “This breaches international law and undermines the legitimate rights of Chinese enterprises.”
Semiconductors remain central to China’s broader technology goals, with initiatives such as “Made in China 2025” channeling significant investments into boosting domestic chip manufacturing. While experts say Washington’s measures may slow progress, they are unlikely to derail it entirely, as Chinese firms double down on efforts to reduce reliance on foreign technologies.
At the same time, industry analysts caution that the U.S. clampdown could trigger disruptions across global supply chains. China remains a key supplier of older-generation chips vital to sectors ranging from automotive manufacturing to consumer electronics. Any potential shortages or cost increases could reverberate through an already fragile post-pandemic economy.
In what could be a tit-for-tat response, Beijing is reportedly weighing retaliatory actions, including heightened scrutiny of U.S. tech companies operating within China and possible export restrictions on rare earth elements—resources where China holds a dominant global position. Such measures could further escalate the confrontation into a broader trade conflict across strategic industries.
The rising tensions also cast uncertainty over the future of multinational firms heavily dependent on Chinese manufacturing and markets. Companies such as Apple, Tesla, and Qualcomm could find themselves in a vulnerable position amid shifting regulatory and geopolitical dynamics.
Global observers are watching closely to see whether Washington and Beijing will pursue diplomatic off-ramps or continue along a trajectory of economic decoupling. With high-level negotiations anticipated in the near term, the decisions made could have lasting implications for the international technology trade landscape.
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