China has threatened legal action against any individual or organization assisting with or implementing U.S. semiconductor restrictions, escalating tensions in the ongoing tech rivalry between the world’s two largest economies.

What Happened: China’s commerce ministry said there could be “corresponding legal liabilities” for those involved in U.S. measures it characterized as “discriminatory restrictive measures” against Chinese firms, Reuters reported.

The warning comes after the U.S. published guidance last week cautioning companies against using Ascend AI chips from Huawei Technologies.

The dispute highlights growing friction as both nations compete for dominance in advanced technology. Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang recently criticized U.S. chip export controls as “exactly wrong …

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