Chinese Industry Groups Warn of Risks in Using U.S. Chips After New Sanctions

Major Chinese associations urge companies to prioritize domestic and non-U.S. chips following tightened U.S. export controls on semiconductors.

The U.S. has implemented its third set of restrictions in three years, targeting 140 Chinese semiconductor companies, including chip equipment makers.
Chinese industry associations, representing sectors like automotive and telecommunications, claim U.S. chips are no longer reliable or secure.
The groups are calling for increased use of domestic chips and strengthened global partnerships with non-U.S. suppliers.
The new U.S. sanctions are said to disrupt global supply chains, increase costs, and harm trust in American chip reliability.
The escalating trade tensions come as President-elect Donald Trump prepares to reintroduce tariffs on Chinese goods in January.