Amid growing tensions between the two countries, China's technology ministry is trying to play down Beijing's semiconductor ambitions, saying that the United States' concerns over the issue are exaggerated.

Chinese government officials have been surprised by the US's backlash towards Beijing's efforts to advance its chip sector, especially considering that many of China's programs are still being drawn up.

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"There's been unnecessary panic. We don't want US and China to have these conflicts," said Peng Hongbing, vice director of information and technology at China's Ministry of Industry and Information Technology.

China's tech ministry is responsible for the development and regulation of advanced technology.

Peng was involved in drafting plans to build China's semiconductor industry.

Peng's remarks are a reflection of the views held by the Chinese government. Officials in China are trying to play down their economic rivalry with the US, amid strongly worded attacks from US President Donald Trump over China's trade practices.

In recent weeks, Chinese government officials have been initiating contact with US trade groups. They have also been speaking more openly to Western media in a bid to send a message to Trump's administration.

One of the areas of contention is the tiny chips that power computers used in any device from smartphones to missiles.

The chips are evidence of the technological self-sufficiency that China craves, and the manufacturing monopoly that the US wants to retain.

China and the US consider the technology as a crucial cog in their national security and economy.

Nathaniel Ahrens, director of China affairs at the University of Maryland, said that semiconductors are the "holy grail" for China and the US.

In its final year in power, the Obama administration responded to concerns by US chipmakers by taking a closer look at China's huge investments in the industry and blocked one deal in December.

Trump's administration is expected to continue the hardline stance on China's semiconductor ambitions.

According to estimates by the departing Obama administration, China plans to invest $150 billion over the next decade to support its technological advancement.

Tagschina, US, donald trump, Semiconductor, chips