Washington’s move is expected to also affect venture capital firms with close ties to the Chinese semiconductor sector, as well as upstream companies such as special gas suppliers, according to one of the people who was briefed on the situation, but declined to be named because of the sensitivity of the matter.
The US Commerce Department did not immediately respond to a request for comment on Wednesday. China’s foreign ministry spokeswoman Mao Ning condemned the planned US trade curbs and said Beijing would take resolute measures to defend mainland business interests.
The new sanctions are set to mark a major escalation in the US-China tech rivalry since October 2023, when the Biden administration tightened its export restrictions introduced in 2022 targeting the mainland’s semiconductor industry, citing concerns that advanced technology could be used to enhance Beijing’s military capabilities.
