The new sanctions, which could be imposed as early as next week, are part of the US's ongoing efforts to curb China's progress in the semiconductor industry. The restrictions may also include controls on trading memory chips, crucial for AI development. The news has led to a decline in Chinese stocks, with Hang Seng's stock sliding by more than 1%. China has expressed its opposition to these measures, accusing the US of abusing export control measures to suppress China's growth.
Key takeaways:
- The Biden administration is considering new sanctions against Chinese semiconductor equipment manufacturers, which could benefit European firms like ASML and push up stocks of semiconductor suppliers in Europe and Japan.
- The proposed sanctions would add an extra 100 Chinese chip equipment makers to the entity list and could also add chip makers to the sanctions list, including key suppliers to Chinese smartphone maker Huawei.
- The US could add 200 Chinese chip firms to its trade blacklist and the controls could also include restrictions around trading memory chips, which are crucial for the development of AI models.
- China is opposed to the US overstretching the concept of national security, abusing export control measures and making malicious attempts to block and suppress China, according to a spokesperson for China's foreign ministry.