- Shares in Chinese chipmakers fell in Hong Kong Monday after the US introduced new export controls.
- The stepped-up measures will cut China off from semiconductors made with American technology.
- “This development is likely to put a further brake on the Chinese tech sector,” an analyst said.
Shares in Chinese chipmakers fell sharply on Monday after the US stepped up export controls on sales of semiconductors, prompting concerns about the prospects for Beijing’s technology ambitions.
The Biden administration introduced export controls Friday that will limit sales of semiconductors made using US technology unless the sellers have an export license. It also added 31 Chinese companies to its “unverified list“.
The measures could make it difficult for Chinese companies to obtain chips built anywhere in the world using US equipment. That could hold back China’s own efforts to develop advanced technology such as military weapons, in what’s seen as the biggest change in US export policy toward Beijing in decades.
The restrictions are an attempt by the US to restrict Beijing’s technological self-sufficiency and will likely lead to semiconductor stocks tumbling further, analysts said.
“The US administration has ramped up its new strict rules on exports, which include a measure to prevent China using certain semiconductor chips made anywhere in the world with US equipment,” Hargreaves Lansdown market analyst Susannah Streeter said in a note.
“This development is likely to put a further brake on the Chinese tech sector given the difficulties China has faced in attempting to develop its domestic semiconductor industry.”