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    The Financial EconomyThe Financial Economy
    Home»News»Business & Economy

    China Warns of ‘Forceful Measures’ After Taiwan Blacklists Huawei in AI Export Crackdown

    China Warns of 'Forceful Measures' After Taiwan Blacklists Huawei in AI Export Crackdown
    Business & Economy 2 Mins Read
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    Beijing has issued a stern warning after Taiwan imposed new export restrictions targeting Chinese tech giants, including Huawei Technologies Co. and Semiconductor Manufacturing International Corp. (SMIC). The move, seen as aligning with the U.S.-led efforts to curb China’s technological rise, has triggered strong condemnation from Chinese officials.

    “We will take forceful measures to resolutely safeguard the normal order of cross-strait economic and trade exchange,” said Zhu Fenglian, spokesperson for China’s Taiwan Affairs Office, during a press briefing in Beijing. While Zhu did not elaborate on what those measures might entail, her comments signaled a sharp escalation in cross-strait tensions fueled by tech rivalry.

    Taipei’s action marks the first time Taiwan has used its export blacklist on major Chinese companies. Firms such as Huawei and SMIC will now require special licenses to engage with Taiwanese suppliers — effectively limiting their access to crucial semiconductor materials, advanced chipmaking tools, and plant construction technologies. These components are vital to producing AI chips, especially those manufactured by Taiwan Semiconductor Manufacturing Co. (TSMC) for industry leaders like Nvidia Corp.

    The decision places Taiwan squarely in the middle of the US-China tech war, as Washington continues its campaign to slow Beijing’s AI and semiconductor advancements. Bloomberg previously reported that U.S. officials had encouraged Taiwan to take a firmer stance on chip export controls, especially under the administration of President Donald Trump, who pressured allies to isolate Chinese tech giants.

    Zhu slammed Taiwan’s decision as “despicable” and accused President Lai Ching-te of bowing to U.S. influence. “Attempts to decouple will not delay the progress of industrial upgrading on the mainland,” she said. “Such actions will only damage the competitiveness of Taiwanese enterprises and the island’s economy.”

    Analysts say the backlash from Beijing could range from retaliatory trade restrictions to increased pressure on Taiwanese companies operating in China. As tensions flare, the export curbs could also impact global tech supply chains that rely on both Chinese and Taiwanese innovation.

    The move underscores how Taiwan’s strategic role in the global semiconductor industry continues to put it at the center of a high-stakes geopolitical and technological showdown.

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