Two of the most important companies behind China’s semiconductor self-sufficiency and AI supremacy hopes were dealt a blow on Saturday, with their addition to Taiwan’s strategic high-tech commodities entity list.

Taiwan has placed export controls on Chinese companies Huawei, and SMIC, making it difficult for them to access resources required for building AI chips

Taiwan has added China's Huawei and SMIC to its trade blacklist in a move that further aligns it with U.S. trade policy and comes amid tensions with Beijing.