 "US chips 'highly unsafe, easy to hack', say Chinese industry bodies to tech companies, advises to buy local")
Chinese industry groups have issued a strong call to domestic tech companies, advising them to avoid purchasing US-made chips and prioritise local suppliers instead.
In a rare coordinated response to escalating US restrictions on China’s semiconductor sector, four of China’s top trade associations claimed American chips are “no longer safe or reliable.” The warnings, released on Tuesday, come amidst rising tensions between the two economic giants, as trade and technology disputes intensify.
A new front in the US-China tech war
The warnings from Chinese industry bodies follow the latest US crackdown on China’s semiconductor industry, which included curbing exports to 140 Chinese companies, such as chip equipment maker Naura Technology Group. This marks the third major US restriction on China’s chip sector in three years.
Beijing responded by banning the export of critical minerals vital to industries ranging from military applications to solar energy and fibre optics. The tit-for-tat measures highlight a deepening technology and trade battle as the US continues efforts to diversify its supply chains away from China.
Impact on US chip giants
The call to reduce reliance on American chips could affect major US firms like Nvidia, AMD, and Intel, which have maintained a foothold in the Chinese market despite prior export controls. Industry experts believe these warnings may act as soft advice, leaving the decision to companies’ discretion. However, should Chinese firms follow through, it could significantly impact US chipmakers already grappling with tightened restrictions.
The US Semiconductor Industry Association dismissed claims that American chips were unreliable, calling the Chinese statements unhelpful. The group urged both nations to avoid further escalation, emphasising the importance of export controls being narrow and security-focused.
Broader implications for global trade
China’s export ban on critical minerals, combined with its push for localised chip production, reflects its growing willingness to retaliate against US policies. These minerals, essential for military hardware, solar cells, and semiconductors, give China leverage in global supply chains.
The situation mirrors Beijing’s earlier actions against US memory chipmaker Micron, which faced a cybersecurity review and was later barred from selling to key Chinese industries.
As the US and China continue their economic tug-of-war, the broader impact on global trade remains uncertain. For now, Chinese industry bodies’ warnings and Beijing’s mineral export ban signal a more assertive stance, aiming to counterbalance increasing US pressure in the tech sector.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
