Chinese industry associations called on Tuesday for domestic companies to be wary of buying US chips, claiming they are “no longer safe”.
Four industry bodies said Chinese firms should buy locally-made chips instead, in a rare coordinated move that came after the Biden Administration announced a third round of chip sector export bans.
The associations cover some of China’s largest industries – such as telecommunications, the digital economy, autos, and semiconductors.
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Their advice could impact US chipmaking giants like Nvidia, AMD, and Intel that, despite export controls, have managed to keep selling their products in the Chinese market.
The associations did not go into details on why US chips were unsafe or unreliable.
Halt to exports of gallium, germanium
Their remarks appear to be part of a two-pronged response to the latest US export curbs announced on Monday, which expanded bans to some 140 companies.
China’s Commerce Ministry also announced an immediate halt to exports of gallium, germanium, antimony and superhard materials to the US, elements used in the tech sector and for ammunition.
“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry said.
US bans ‘causing harm to Chinese industry’
The Internet Society of China urged domestic companies to think carefully before procuring US chips and seek to expand cooperation with chip firms from countries and regions other than the United States, according to its official WeChat account.
It also encouraged domestic firms to “proactively” use chips produced by both domestic and foreign-owned enterprises in China.
US chip export controls have caused “substantial harm” to the health and development of China’s internet industry, it added.
The warnings came after the United States on Monday launched its third crackdown in three years on China’s semiconductor industry, curbing exports to 140 companies, including chip equipment maker Naura Technology Group.
- Reuters with additional input and editing by Jim Pollard
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