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.

Chinese companies Huawei and SMIC may have a difficult time accessing resources needed to build AI chips, due to Taiwanese export controls.

Taiwan has blacklisted Huawei Technologies Co. and Semiconductor Manufacturing International Corp., dealing another major blow to the two companies spearheading China’s efforts to develop cutting-edge AI chip technologies.