Chinese Industry Leaders Urge Shift from U.S. Chips Amid Safety Concerns

Chinese industry associations advised companies to reconsider purchasing U.S. chips, citing safety concerns without elaborating. This guidance could impact major U.S. chip manufacturers and escalate trade tensions. Associations encouraged exploring partnerships with non-U.S. chip firms and emphasized using domestically produced chips due to U.S. export controls on China.

In a significant move, Chinese industry associations have collectively urged businesses to reconsider purchasing U.S. chips, labeling them as 'no longer safe.' This guidance, however, lacked specific reasons for these concerns.

The announcement could pose challenges for major U.S. chip manufacturers like Nvidia, AMD, and Intel, as they navigate export controls while sustaining business in China. Additionally, it may intensify existing trade tensions between China and the United States.

With an emphasis on collaboration with non-U.S. chip firms, the associations have highlighted the importance of using domestically-produced chips, pointing to the adverse effects of U.S. export controls on China's internet industry development.

(With inputs from agencies.)