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U.S.-China Tech Tensions Rise as Beijing Questions Chip Security

Updated: Dec 6


Photo by Reuters

Summary


  • Chinese industry groups have urged companies to exercise caution in purchasing U.S. chips, citing security concerns following Washington's latest sanctions.

  • The U.S. imposed fresh export controls on 24 chipmaking tools and three key software categories, targeting 140 Chinese firms.

  • Chinese firms are encouraged to diversify suppliers and prioritize domestic chip alternatives to mitigate risks.


 

Chinese industry bodies representing sectors such as semiconductors, automobiles, and telecommunications have issued a unified advisory urging their members to exercise caution in purchasing chips from U.S. suppliers. The warnings come days after Washington unveiled its latest round of export controls, targeting 140 Chinese entities and restricting access to 24 chipmaking tools and essential software categories.

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