
China's commerce ministry said it will protect research institutions added to the US Entity List, restricting tech access. Markets showed little reaction as the trade rift deepens.
China's commerce ministry said Tuesday it will defend the rights of its research institutions after the United States added them to an export control list. The statement did not name the specific institutions or detail the planned response.
The US move, announced last week, placed several Chinese entities on the Entity List. The list restricts their access to American technology and components. It targets universities and research centers involved in advanced fields such as artificial intelligence and quantum computing.
The number of Chinese entities on the list has grown to more than 700. The US has tightened restrictions on the sale of advanced chips and chipmaking equipment to China over the past year. The latest additions are part of a broader effort to curb the transfer of sensitive technology.
Markets showed little immediate reaction. The Shanghai Composite Index closed flat. The tech-heavy Shenzhen index edged up 0.2%. Hong Kong's Hang Seng Index rose 0.3%, with semiconductor stocks slightly lower.
China has previously retaliated against US export controls. In 2023, it imposed export restrictions on rare earth elements, critical materials used in electronics and defense. It also launched antitrust investigations into some US firms. The commerce ministry did not say whether it plans similar measures this time.
The full scope of China's response is not yet clear. The ministry said it will continue to take measures to protect the interests of its research bodies. It did not specify a timeline.
The latest escalation adds to pressures that have been reshaping global supply chains, as detailed in market analysis. The US Commerce Department said the entity additions take effect immediately.
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