The US Department of Commerce has announced broad new restrictions on the sale of China's semiconductor technology. The report says that the expansion of control concerns agreements on the supply of products "which are used for the production of supercomputers and semiconductors."
Such goods, supplied to 28 Chinese companies, need to be licensed, the agency said.
Chinese stocks posted their biggest decline on Monday after the U.S. stepped up controls on semiconductor exports to China.
The stock prices of microelectronics manufacturers Semiconductor Manufacturing International Corp. are falling most significantly on Chinese stock exchanges. (-2.7%), Advanced Micro-Fabrication Equipment Inc. (-17.6%) and GigaDevice Semiconductor Inc. (-7%).
Chinese embassy spokesman in Washington, Liu Penyu, said in response to the US administration's decision that the US is trying to "use its technological prowess to its advantage to deter markets and developing countries."
"The US probably hopes that China and the rest of the developing world will forever remain at the lower end of the industrial chain," the diplomat added.
