According to sources, the Chinese government held emergency talks with significant semiconductor companies over the last week to analyze the harm caused by the U.S.’s recently enacted chip penalties. The meetings were held behind closed doors, and executives from companies including Yangtze Memory Technologies and Dawning Information Industry were invited. Many business leaders predicted that the sanctions would be terrible for the sector.
China’s Ministry of Industry and Information Technology held urgent meetings with top semiconductor businesses over the previous week to assess the harm caused by the U.S. chip limitations.
According to the report, the government called executives from companies including Dawning Information Industry Co (603019. SS), a supercomputer expert, and Yangtze Memory Technologies Co (YMTC) to attend meetings behind closed doors.
Last month, the Biden administration passed a comprehensive set of export curbs to halt Beijing’s scientific and military advancements. These constraints include sales limitations on some cutting-edge chips and chip equipment tools.
The new regulations, according to experts, will have a significant effect, slowing China’s efforts to build its chip industry and advance commercial and government research into data centers, military weapons, artificial intelligence, and other fields that depend on supercomputers and expensive chips.
According to the Bloomberg story, many attendees at the meetings warned that the U.S. limitations bode death for their industry and China’s plans to decouple its economy from American technology.
Requests for comment from Reuters were not immediately answered by YMTC, Dawning, or the industry ministry.
In his work report, Chinese President Xi Jinping urged his nation to “win the struggle” in vital technologies as he opened the once every five years Communist Party Congress on Sunday.
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