Asked about the report at a regular news conference on Thursday, commerce ministry spokesperson He Yadong said China "strongly opposes" what he said was the U.S. broadening the concept of national security, and the "abuse" of control measures targeting Chinese companies.

Chip stocks in Asia and Europe jumped on the news. ASML Holding NV rose as much as 5.5%, leading a rally in chip gear firms including BE Semiconductor Industries NV and Aixtron SE.

More restrictions on the sale of chip equipment and AI memory chips to China are in the making, as the battle over silicon deepens among the world's semiconductor powers. The Biden administration will likely roll out the additional curbs next week,

Shares of ASML and its peers in the European computer chip equipment sector climbed on Thursday after Bloomberg News reported that the Biden administration's China chip curbs could be less severe than expected.

Good morning. The US is weighing China chip curbs that stop short of earlier proposals. UK automakers warn of a bleaker outlook. And more Brits are giving away homes to family members to escape rising taxes.