Beijing - "Small yard and high fence" will not stop China's innovation-driven development, nor will it do any good to U.S. companies or the entire semiconductor industry, a Chinese foreign ministry spokesperson said on Tuesday.

Spokesperson Mao Ning made the remarks when asked to comment on a related query at a daily press briefing.

It is reported that chipmaker Nvidia has included Huawei in its current competitors in AI, chips and various areas for the first time in its recent report to the U.S. Securities and Exchange Commission, and said that the company's competitive position may be further harmed if there're further changes in the U.S. government's export controls.

Noting open cooperation is the core driving force for the growth of the semiconductor industry and China is one of the major semiconductor markets in the world, Mao said that to fragment the market, destabilize global industrial and supply chains, and stymie efficiency and innovation serves no one's interests.

"The United States needs to follow the principles of market economy and fair competition, and support companies around the world in advancing science and technology through healthy competition," Mao said.