Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI.
Some US lawmakers feared the restrictions would have incentivized countries to go to China for AI chips, spurring the superpower's development of state-of-the-art technology.
In a statement Wednesday, Beijing’s commerce ministry described the warnings as “typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain”.
“These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests,“ the commerce ministry said.
And it vowed to take “firm steps to safeguard its legitimate rights and interests” in response.
The commerce department said its policy was aimed at sharing American AI technology “with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries”.
Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.
Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.
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