On Wednesday, China issued a stern warning to American companies, saying they could face legal consequences if they comply with new U.S. guidance targeting Chinese-made technology, escalating tensions in the ongoing tech war between Washington and Beijing, Newsweek reported.

China’s Ministry of Commerce denounced new U.S. industry guidance threatening penalties against American businesses trading or using Chinese integrated circuits, calling it an “attempt to ban Chinese advanced-computing chips globally.”

The ministry said companies that assist in implementing the U.S. measures could be prosecuted under Chinese law, including the Anti-Foreign Sanctions Law passed in 2021. That legislation gives Beijing broad authority to retaliate against foreign firms that have harmed China’s political or economic interests.

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