Analysts say, China may also release an 'unreliable entity list' in response to US actions. In September, China's Ministry of Commerce announced rules for its list of 'unreliable entities' to curb the operations of foreign companies deemed "unreliable". Chinese Foreign Ministry has previously declared its opposition to US sanctions on Chinese companies. SMIC relies heavily on equipment from companies based in the United States and other relevant countries to produce chips for clients. Earlier this year, SMIC issued one of the biggest Initial Public Offers in the Shanghai Stock market, aiming to use the cash to kickstart manufacturing into more advanced technology. In its statement, the company has advised shareholders and potential investors to exercise caution when dealing in the securities of the Company. This sanction may further hit Huawei, already under US sanctions, as it may be difficult for SMIC to supply chips to it.