Chinese companies should be wary of buying U.S. chips as they are "no longer safe" and buy locally instead, four of the country's top industry associations said on Tuesday in a rare coordinated response to Washington's curbs on Chinese chipmakers.

China and the US have targeted each other's economies in the last few days, escalating tensions even before U.S. President-elect Donald Trump returns to the White House in January

Their advice could impact US chipmaking giants like Nvidia, AMD, and Intel that, despite export controls, have managed to keep selling their products in the Chinese market

The US has introduced export restrictions to 140 Chinese semiconductor companies to curb the growth of its AI industry.

The United States on Monday launched its third big crackdown in three years on China's semiconductor industry, curbing exports to 140 companies, including chip equipment maker Naura Technology Group ,

The four bodies – the Internet Society of China, the Chinese Association of Automobile Manufacturers, the China Semiconductor Industry Association and the China Association of Communication Enterprises – on Tuesday issued statements within minutes of each other,

The United States is imposing new export restrictions on China’s semiconductor industry, barring U.S. shipments to 140 companies. This includes chip equipment maker, Naura Technology Group. According to a Reuters report,

The Biden administration today announced new restrictions on advanced chip technology that can be exported to China in a further effort to curb the country’s ambitions in artificial intelligence and the development of high-end military technology.

U.S. President Joe Biden speaks at the 75th NATO Summit in Washington, D.C., on July 11, 2024. The U.S. is continuing its efforts to curb China’s advanced chipmaking ambitions with new trade restrictions.