Chinese industry associations claim that US chips are "no longer safe" to purchase.

Their recommendations may have an effect on US chipmakers Nvidia, AMD, and Intel, who have continued to sell their goods in China in defiance of export restrictions.

Beijing: In a rare coordinated response to Washington's restrictions, four of the nation's leading business associations said Tuesday that Chinese companies should avoid purchasing U.S. chips because they are "no longer safe" and instead purchase locally.

The groups did not elaborate on the reasons why U.S. chips were unsafe or untrustworthy, but they issued comments with similar wording soon after one another.

Together, the associations have 6,400 members and represent some of China's biggest industries, such as semiconductors, telecommunications, the digital economy, and automobiles.

Their recommendations may have an effect on American semiconductor manufacturers Nvidia, AMD, and Intel, who have continued to sell their goods in China in defiance of export restrictions.

Ahead of President-elect Donald Trump's return to the White House, it might also contribute to the already rising trade tensions between the two countries.

According to its official WeChat account, the Internet Society of China advised domestic companies to exercise caution while acquiring chips from the United States and to look for opportunities to increase collaboration with chip producers from other nations and regions.

Additionally, it urged local companies to "proactively" employ chips made in China by both domestic and foreign-owned businesses.

It further stated that the development and well-being of China's internet industry have suffered "substantial harm" as a result of U.S. chip export restrictions.

According to the China Association of Communication Enterprises, the Chinese government ought to look into the security of the nation's vital information infrastructure supply chain since it no longer views American chip goods as trustworthy or secure.

The warnings followed the United States' third crackdown on China's semiconductor industry in three years, which shut down exports to 140 companies, including Naura Technology Group, a manufacturer of chip equipment, on Monday.

They are similar to how China treated American memory chipmaker Micron, which was the focus of a cybersecurity investigation last year soon after the United States placed restrictions on exporting chipmaking technology to China.

A low-double-digit portion of Micron's overall revenue was impacted when China later prohibited the company from selling its chips to important domestic businesses.

Intel has also come under fire. The Cybersecurity Association of China, another significant industry body, demanded a security review of Intel equipment in October, claiming the American chipmaker had "constantly harmed" the nation's interests and national security.