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China criticises US tightening of chip export rules

Illustration picture of Chinese and U.S. flags with semiconductor chips

BEIJING (Reuters) - China has criticised the tightening of U.S. rules on semiconductor exports, saying they have created more hurdles to trade and more uncertainty in the chip industry.

The Biden administration last week revised rules aimed at making it harder for China to access U.S. artificial intelligence chips and chipmaking tools, part of a larger effort to hobble Beijing's chipmaking industry over national security concerns.

"The U.S. has broadened the concept of national security, arbitrarily revised the rules, and tightened control measures. That has not only set up more obstacles and imposed a heavier compliance burden on Chinese and American companies who want to work together economically and in trade normally but has also created huge uncertainty for the global semiconductor industry," a Commerce Ministry spokesperson said, according to a statement.

The spokesperson, responding to a reporter's question, said the move by the U.S. "seriously affects mutually beneficial cooperation between Chinese and foreign enterprises and harms their legitimate rights and interests. China firmly opposes this."

The U.S. imposed rules last October barring exports and companies like Nvidia and AMD have been affected by the spat.

"China is ready to work with all parties to strengthen mutually beneficial cooperation and promote the security and stability of the global semiconductor industry and supply chain," the spokesperson said.

(Reporting by Bernard Orr; Editing by Edwina Gibbs)