On Wednesday, US officials told chip designer Nvidia Corp to cease exporting two top computing chips used in artificial intelligence to China.
The US Department of Commerce said it is evaluating its China-related policies and will "keep advanced technologies out of the wrong hands."
On Thursday, the Chinese foreign ministry accused the US of imposing a "tech blockade" on China and undermine the stability of global supply chains.
"The US continues to abuse export control measures to restrict exports of semiconductor-related items to China, which China firmly opposes."
- Shu Jieting, Commerce Ministry Spokesperson
The ban applies to Nvidia's A100 and H100 chips designed to accelerate machine learning tasks, and could interfere with the development of H100, their flagship chip announced this year.
Nvidia said it could lose out on $400 million in sales this quarter due to the new rules, unless Chinese firms decide not to buy alternative Nvidia products.
The ban also applies to AMD, who will be unable to export its MI250 artificial intelligence chips to China, but it believes its MI100 chips will not be affected.
Following the new rules, Nvidia shares fell 6.6%, while AMD fell 3.7% after hours.
