China vows retaliation over Taiwan’s tech export blacklist targeting Huawei,SMIC
China has vowed to retaliate against what it described as Taiwan’s discriminatory technology restrictions, following Taipei’s decision to blacklist several Chinese firms — including Huawei Technologies — in a move that curbs their ability to develop advanced artificial intelligence (AI) technologies.
Zhu Fenglian, spokesperson for the State Council’s Taiwan Affairs Office, issued a statement on Tuesday (June 25), saying: “We will take firm measures to uphold the normal order of economic and trade exchanges across the Taiwan Strait.”
Her comments were in response to Taiwan’s latest export control measures targeting Chinese companies, though she did not elaborate on what form Beijing’s countermeasures might take.
Zhu also condemned the decision as “repugnant,” accusing Taiwan’s President Lai Ching-te of showing undue allegiance to the United States. She referenced the Trump administration’s previous push for Taiwan to play a more active role in restricting China’s access to semiconductors.
“Taiwan’s attempt to decouple from China’s tech supply chain will do nothing to halt the mainland’s industrial progress,” Zhu warned. “Instead, it will only harm the competitiveness of Taiwan’s own enterprises and economy.”
Context: Taiwan adds Huawei and SMIC to export blacklist
On 15 June, Taiwan’s Ministry of Economic Affairs updated its strategic high-tech commodities list to include Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC), placing them alongside restricted entities such as the Taliban and al-Qaeda.
The updated list requires Taiwanese firms to seek government approval before exporting any goods to the named companies. Huawei and SMIC — both central to China’s efforts in AI and semiconductor self-reliance — were added as part of a broader national security review conducted earlier in the month.
According to the ministry’s trade department, 601 entities were newly listed based on “arms proliferation prevention and national security concerns,” with other blacklisted organisations based in Russia, Iran, Pakistan, Myanmar, and China.
“Manufacturers must comply with export control regulations, carry out due diligence, and assess transaction risks carefully,” the department said.
Taiwan is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker and a key supplier to firms like Nvidia. Both Huawei and SMIC have been racing to close the gap in chip innovation and production.
Ongoing US restrictions and enforcement
Huawei has already faced sweeping restrictions from the United States. It was added to the US Commerce Department’s trade blacklist, barring it from receiving US-made goods and technology — including chips manufactured overseas using American tools and software.
Last October, Canadian tech analysis firm TechInsights found a TSMC-made chip inside Huawei’s 910B AI processor — the most advanced AI accelerator mass-produced by a Chinese firm. In response, TSMC halted shipments to Chinese chip designer Sophgo, which made a similar chip. In November, the US Commerce Department ordered a full suspension of further shipments.
Taiwan has pledged to tighten controls amid concerns that Chinese firms — including SMIC — are trying to poach semiconductor expertise and intellectual property from the island.
Despite export controls, SMIC, China’s largest chipmaker, has continued to invest heavily in expanding domestic production capabilities, bolstering the country’s push for semiconductor independence in the face of intensifying geopolitical and technological competition.
