U.S. Chip Curbs Threaten China’s Emerging Manufacturers

HONG KONG—U.S. restrictions on exports of chips and chip-making equipment to China are likely to deal a setback to some of the country’s fast-emerging semiconductor companies, curbing China’s attempts to catch up with the U.S. in advanced technology.

The rules unveiled Friday by the Commerce Department require a license for U.S. companies to export advanced chips and chip-making equipment key to China’s technological goals, vastly expanding on existing rules restricting the export of advanced technologies to China.