US’ proposed sanctions are expected to affect fewer Huawei suppliers than originally anticipated. Credit: IM Imagery/Shutterstock.

China has cautioned that it would take “necessary actions” to defend its companies if the US intensifies its restrictions on semiconductor, reported Reuters.

This response comes amid reports indicating the Biden administration could soon impose fresh chip export limitations to China.

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China Commerce Ministry spokesperson He Yadong was cited by the news agency as saying that the country opposes the US’ approach to national security and the targeting of Chinese firms with control measures.

Yadong said: “These actions severely disrupt the international economic and trade order, destabilise global industrial security, and harm the cooperative efforts between China and the US, as well as the global semiconductor industry.

“If the US insists on escalating control measures, China will take necessary actions to resolutely protect the legitimate rights of Chinese enterprises.”

Earlier in November 2024, Reuters reported that the US Chamber of Commerce alerted its members of the possibility that up to 200 Chinese semiconductor entities could be added to a trade blacklist.

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This move would largely prevent suppliers from the US from conducting business with these companies and is  driven by concerns over China’s potential military applications of advanced technologies.

According to Bloomberg, the Biden administration is considering further curbs on sales of semiconductor equipment and AI memory chips to China.

Sources familiar with the matter indicate that the proposed sanctions might affect fewer Huawei suppliers than originally anticipated.

The proposed sanctions are also expected to target Semiconductor Manufacturing International-operated two chip factories.

It could also target more than 100 China-based entities involved in semiconductor manufacturing equipment.