KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
Chinese companies should exercise caution when purchasing US-made chips, as they are "no longer safe," according to a rare coordinated statement from four of China’s leading industry associations. These organizations are urging businesses to prioritize domestic alternatives, marking an escalation in trade hostilities between the world’s two largest economies.
The warning follows the latest round of US restrictions on Chinese semiconductor firms, announced Monday, targeting 140 companies, including chip equipment manufacturer Naura Technology Group. This marks the third crackdown on China’s chip industry in as many years.
The tensions come as US President-elect Donald Trump prepares to return to the White House in January, vowing to revive tariffs on Chinese goods, reigniting a trade war reminiscent of his first term.
Industry Bodies Take a Stand
The associations represent key Chinese sectors, including telecommunications, semiconductors, and the digital economy, encompassing over 6,400 companies. Their statements criticized US chips as unsafe but did not provide specific reasons. They advised domestic companies to collaborate with non-US chip suppliers and increase the use of locally manufactured semiconductors.
China’s Internet Society echoed these sentiments, encouraging firms to rely on domestic and foreign-made chips produced within China and to avoid US suppliers whenever possible. It cited "substantial harm" to the country’s internet sector from ongoing US export restrictions.
The China Association of Communication Enterprises went a step further, urging the government to scrutinize the security of the country's critical information infrastructure supply chain, citing reliability concerns with US products.
Beijing Retaliates with Rare Mineral Ban
On the same day, China announced restrictions on exporting rare minerals essential for military, solar, and fiber optic manufacturing processes. A White House spokesperson condemned the move, warning against further "coercive actions" and reaffirming US efforts to diversify supply chains away from reliance on China.
Impact on US Chipmakers
The warnings could pose significant challenges for US semiconductor giants like Nvidia, AMD, and Intel, which have maintained a presence in the Chinese market despite export restrictions. The companies have not responded to requests for comment.
“China seems to have dropped its cautious approach and is now openly retaliating,” observed Tom Nunlist, associate director at research firm Trivium China.
Past incidents underline the growing scrutiny faced by US firms. In 2023, China banned Micron Technology from selling to key domestic industries following a cybersecurity review, significantly impacting the company’s revenue. Intel, too, has faced increasing pressure, with the Cybersecurity Association of China accusing it of harming national security.
The Gloves Are Off
The latest developments underscore a new phase in US-China trade tensions, with Beijing signaling it will no longer shy away from taking retaliatory measures. As the rivalry intensifies, the global semiconductor landscape faces heightened uncertainty, with both nations vying for technological supremacy.
Comments
Post a Comment