((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Additional context) by Eduardo Baptista and Brenda Goh
Chinese companies should be wary of U.S. chips because they are “no longer safe” and instead buy local products, four of the country’s main industry associations said Tuesday in a rare coordinated response to Washington’s restrictions.
The associations, which issued similar statements shortly after another, did not explain in detail why the U.S. chips were not safe or reliable.
The associations cover some of China’s largest industries, including telecommunications, digital economy, automobiles and semiconductors, and together count 6,400 companies among their members.
Their opinion could impact U.S. chipmaking giants such as Nvidia NVDA.O , AMD AMD.O and Intel INTC.O which, despite export controls, have managed to continue selling their products on the Chinese market.
It could also worsen escalating trade tensions between the two nations ahead of President-elect Donald Trump’s return to the White House.
The Internet Society of China urged domestic companies to think carefully before purchasing American chips and seek to expand cooperation with chip companies from countries and regions other than the United States, according to its official WeChat account .
She also encouraged domestic companies to “proactively” use chips produced by domestic and foreign companies in China.
US controls on chip exports have caused “substantial harm” to the health and development of China’s internet industry.
The China Association of Communications Companies said it no longer considers U.S. chips to be reliable or secure and that the Chinese government should examine the degree of security of the supply chain of the country’s critical information infrastructure .
The warnings came after the United States launched its third crackdown in three years on China’s semiconductor industry on Monday, cutting exports at 140 companies, including chip equipment maker Naura Technology Group. 002371.SZ.
The moves echo China’s treatment of U.S. memory chip maker Micron, which came under cybersecurity scrutiny last year shortly after the U.S. imposed export controls of chip manufacturing technologies to China.
China then banned Micron from selling its chips to key domestic industries, impacting a double-digit percentage of its total revenue.
Intel has also come under scrutiny. In October, another influential industry group, the Cybersecurity Association of China, called for a review of Intel’s product security, saying the U.S. chipmaker had “consistently harmed” the country’s national security and interests.
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