The U.S. will grant a temporary license from October to April next year to allow businesses to make high-tech products in China.
Semiconductor Manufacturing International Corporation, China's largest chipmaker, was down 3% in Hong Kong on Monday.
As of Monday afternoon, Shanghai Fudan Microelectronics was down more than 20%.
Concerns about falling demand caused shares of US chipmakers to tumble on Friday.
According to an official English-language transcript, the Chinese Ministry of Foreign Affairs said that the U.S. has been abusing export control measures.
She said that such practices run counter to the principle of fair competition. It will hurt the interests of U.S. companies and Chinese companies.
There were no plans for Chinese counter-measures.
Semiconductor supply chain is very specialized. China has been investing in domestic players in an attempt to catch up to companies that have the most advanced tech.
The world's most advanced semiconductors are manufactured by Taiwan Semiconductor Manufacturing company. The only company that can make machines that are complex enough to make the most advanced chips is ASML.
U.S. companies such as Applied Materials and KLA are leaders in other areas.
The new U.S. restrictions will have an impact on business.
The U.S. government puts Chinese companies on a blacklist that requires suppliers to get a license before selling to them.
Suppliers to those two companies were given licenses last year to do billions of dollars of business.
At least 1,600 new license applications a year are expected to be received by the U.S. Bureau of Industry and Security.
A senior U.S. government official told reporters that international cooperation is necessary.
The official said that the controls would lose effectiveness if other countries didn't join them. If foreign competitors are not subject to the same controls, the U.S. technology leadership could be harmed.
CNBC asked the U.S. embassy in Beijing if it had anything to say about the report.
All Rights Reserved © 2024
