Investing.com – Shares of Chinese chipmakers rose on Wednesday after the government warned against relying on U.S. chips and encouraged companies to buy local in airy of novel U.S. export restrictions on the country.

Semiconductor Manufacturing International Corp (HK:) – the country’s largest chipmaker by volume – rose 2.7% in Hong Kong trading, while comparable makers Hua Hong Semiconductor Ltd (HK:) i Fudan Microelectronics in Shanghai Group Co Ltd (HK:) added about 1% each.

Chinese industry associations have warned that US chips are “no longer safe” and encouraged companies to buy locally instead, in Beijing’s response to novel export curbs from Washington, media reports showed.

This increased local inventories of chipmakers, with the prospect of increased demand in the country. Companies like SMIC and Huawei already produce chips that compete with offerings from major U.S. companies like NVIDIA Corporation (NASDAQ:) in China.

Wednesday’s warning came after Washington this week imposed a third major crackdown in three years on China’s chipmaking industry, cutting off more companies from access to key chipmaking equipment.

China has retaliated by blocking exports of key minerals and metals to the United States amid a rapidly escalating trade war. The situation could be worsened by President-elect Donald Trump imposing further trade tariffs on Beijing after taking office in January.

Washington moved to quickly block China’s access to the artificial intelligence industry, citing national security concerns. But the move has drawn the ire of Beijing, souring relations between the world’s largest economies.