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STORY: Chinese companies should be wary of buying U.S. chips as they are "no longer safe".That was the warning from four of the country's top industry associations on Tuesday (Dec 3), who also said firms should buy locally instead.It was a rare coordinated response to Washington's curbs on Chinese chipmakers.The statements did not detail why U.S. chips were unsafe or unreliable.The warning arrives while after the two nations targeted each other's economies over the last few days.It has escalated tensions even before U.S. President-elect Donald Trump returns to the White House in January.Trump has promised to impose heavy tariffs on imported Chinese goods.The move would revive a trade war from his first four-year term as president.On Monday, the U.S. launched its third crackdown in three years on China's semiconductor industry.It curbed exports to 140 companies, including chip equipment maker Naura Technology Group.Tuesday's call from Chinese industry bodies to buy local could affect U.S. chipmaking giants such as Nvidia, AMD, and Intel.Those firms have managed to keep selling products in the Chinese market despite export controls. The three companies did not immediately respond to a Reuters request for comment.The Semiconductor Industry Association is a U.S. trade association representing major chipmakers. It responded to the coordinated call to limit procurement of U.S. chips as 'unhelpful'.It further argued any claims American chips are 'no longer safe or reliable' are simply inaccurate.The group also encouraged both the U.S. and Chinese governments to avoid further escalation.
