
Chinese chip stocks tumble after U.S. calls for new curbs on high-end tech
BEIJING — Chinese chip stocks fell Monday after the U.S. announced new export controls aimed at limiting Beijing's ability to produce advanced military systems.
The sweeping rules mean companies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) said in a release Friday.
The rules, effective this month, expand on prior U.S. attempts to crimp Chinese companies' access to key tech.
Notably, the changes also mean foreign companies will need a license if they use American tools to produce specific high-end chips for sale to China.
"These rules make clear that foreign government actions that prevent BIS from making compliance determinations will impact a company';s access to U.S. technology through addition to the Entity List," the U.S. release said.

The U.S. said it would grant a temporary license from Oct. 21 through to April next year to allow businesses to manufacture some of the high-tech products in China for use outside the country.
Chinese chips stocks tumble
Mao did not mention any plans for Chinese countermeasures.
Taiwan Semiconductor Manufacturing Company dominates the manufacturing capacity for the world's most advanced semiconductors. Netherlands-based ASML is the world's only company able to make the highly complex machines that are needed to produce the most advanced chips.
On the other hand, U.S. companies such as Lam Research, KLA and Applied Materials are industry leaders for other tools needed to make chips.
Assessing the damage
"We recognize that the unilateral controls we're putting into place will lose effectiveness over time if other countries don't join us," the official said in the report. "And we risk harming U.S. technology leadership if foreign competitors are not subject to similar controls."
The U.S. embassy in Beijing did not immediately respond to a CNBC request for comment on the report.