Official financial reports from Huawei and industry analysis

U.S. Tightens Chip Export Controls on China, Adds 136 Entities; China Vows Countermeasures

Dec 2, 2024, 07:06 PM

The Biden administration has announced new export restrictions targeting China's semiconductor industry, aiming to curb Beijing's technological advancements, particularly in artificial intelligence and military applications. The U.S. added 136 Chinese entities, including major chip firms like Naura, Piotech, SMIC, and Huawei-linked companies, to the Entity List, effectively blacklisting them. The new rules tighten controls on 24 new chip-making tools, high-bandwidth memory (HBM) components used in AI, chipmaking equipment, and software tools. Commerce Secretary Gina Raimondo called the rules "groundbreaking and sweeping," stating that U.S. technology will not fuel the People's Liberation Army's modernization. China has strongly opposed the measures, with the Ministry of Commerce and Foreign Ministry calling the actions typical economic coercion and non-market practices, and vowing to take necessary measures to safeguard its legitimate rights and interests. This is the third time in three years that the U.S. has significantly tightened chip export controls on China, escalating tensions between the world's two largest economies.