The United States is reportedly preparing to release a list of Chinese chipmaking facilities that will be prohibited from receiving crucial tools. This move could significantly impact the global semiconductor industry.

What Happened: The U.S. government is compiling a list of advanced Chinese chip factories that will be barred from obtaining essential equipment, Reuters reported, citing three sources familiar with the matter. The list is expected to be made public in the coming months.

This initiative aims to enable U.S. companies to better comply with the restrictions on technology flow into China. The U.S. Department of Commerce had previously prohibited American companies from supplying equipment to Chinese factories producing advanced chips, citing national security concerns.

However, companies have encountered difficulties identifying the specific factories in China that produce advanced chips. They have long urged the commerce department to publish a list to facilitate compliance with the restrictions.

A spokesperson for the Chinese Embassy in Washington said the U.S. should “stop overstretching the concept of national security and abusing the state power to suppress Chinese companies,” according to the report.

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Despite the ongoing trade tensions, Chinese President Xi Jinping recently expressed optimism about the future of Sino-American relations during a meeting with U.S. business leaders.

Why It Matters: The U.S. move to restrict the flow of technology to Chinese chip factories comes at a time when China is actively seeking to reduce its reliance on U.S. technology. Earlier this month, China announced new guidelines to phase out U.S. microprocessors from government PCs and servers, opting instead for domestic technology.

Meanwhile, China has been identified as the leading nation in government-backed exploitation of zero-day vulnerabilities, raising concerns about the country’s growing technological capabilities and its potential impact on global cybersecurity.

These developments underscore the escalating technological rivalry between the U.S. and China, with both countries taking steps to bolster their domestic semiconductor industries and reduce their dependence on each other.

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