Trade relations with Washington are proving to be a major challenge for Beijing, with the United States tightening its export control measures against China’s semiconductor industry. These measures also extend to the country's artificial intelligence development.

In particular, the US government has imposed tighter controls on 24 types of equipment used in the production of semiconductor components made in China. New export controls also target high-bandwidth memory products used in chip manufacturing. In addition, 140 Chinese companies, including SMIC and Huawei, have been added to a list of entities requiring export licenses for global suppliers.

"They're the strongest controls ever enacted by the US to degrade the People's Republic of China's ability to make the most advanced chips that they're using in their military modernization," US Commerce Secretary Gina Raimondo said.

In July 2024, reports revealed that the Biden administration was planning to further increase export barriers on semiconductor manufacturing equipment to Chinese chipmakers. These measures were supposed to affect most Chinese factories, preventing them from purchasing equipment and technology from 30 countries, including Israel, Singapore, and Malaysia. Furthermore, in early November, US authorities demanded that Taiwan Semiconductor Manufacturing Company (TSMC), a major semiconductor manufacturer, stop supplying chips used in AI technology to China.