China Lashes Out at Latest U.S. Export Controls on Chips

China has criticized the latest U.S. decision to tighten export controls, saying it violates international economic and trade norms and will "isolate and backfire" on the U.S. by making it more difficult for China to obtain and produce advanced computing chips. Speaking on behalf of the Foreign Ministry, the U.S. was charged with intentionally obstructing and suppressing Chinese businesses by abusing its export control laws.

In recent years, tensions between the United States and China have increased over security and technology issues. While China has set aside billions for investments in the production of semiconductors, the U.S. has implemented a variety of measures and restrictions to prevent China from obtaining chip technology.

The tensions have an effect on global and American semiconductor firms that either export chips or produce chips in China. The stock price of semiconductor firms like Nvidia and AMD has dropped by 40% in the last 12 months.