Chinese companies should be wary of buying U.S. chips as they are "no longer safe" and buy locally instead, four of the country's top industry associations said on Tuesday in a rare coordinated response to Washington's curbs on Chinese chipmakers.

China and the US have targeted each other's economies in the last few days, escalating tensions even before U.S. President-elect Donald Trump returns to the White House in January

The US has introduced new export controls in an effort to curtail China’s ability to create an advanced semiconductor industry and to slow its development of artificial intelligence with military applications.

Their advice could impact US chipmaking giants like Nvidia, AMD, and Intel that, despite export controls, have managed to keep selling their products in the Chinese market

Beijing tightened controls on the export of key raw materials to the U.S. and cautioned Chinese companies against buying American chips.

Chip equipment maker Applied Materials said on Tuesday it was not changing its outlook for the first quarter in response to the U.S. government's latest restrictions on semiconductor exports to China.