U.S. tech companies that receive federal funding will be barred from building "advanced technology" facilities in China for 10 years, the Biden administration has said. 

The guidelines were unveiled Sept. 6 as part of a $50 billion plan aimed at building up the local semiconductor industry, reports BBC News. It comes as business groups have pushed for more government support in an effort to reduce reliance on China, while facing a global microchip shortage which has slowed production.

Read more: Will Passage of the CHIPS Act Resolve Supply Chain Issues?

"We're going to be implementing the guardrails to ensure those who receive CHIPS funds cannot compromise national security... they're not allowed to use this money to invest in China, they can't develop leading-edge technologies in China.... for a period of ten years," according to U.S. Commerce Secretary Gina Raimondo, explaining the U.S. Chips and Science Act in a statement.

"Companies who receive the money can only expand their mature node factories in China to serve the Chinese market."

The U.S. and China are locked in a long-running dispute over trade and technology.