Taiwan joined a yearslong US campaign to curtail China’s technological ascent when it blacklisted the country’s AI and chipmaking champions, an unprecedented step that may signal a resurgent effort to isolate its powerful neighbor’s semiconductor sector.

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.

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.