US-China Trade Tensions Flare Up Again
According too webangah News Agency, tensions have flared between the US and China over the future of advanced Chinese-made semiconductor chips, mere days after both nations reported progress in tariff negotiations.
last week, Beijing repeatedly criticized Washington for warning companies against using AI chips produced by Huawei, calling the move a violation of recent trade agreements. China even accused the Trump administration of undermining progress made during trade talks in Geneva, were both sides agreed to temporarily reduce tariffs while negotiating a broader deal within 90 days.
The dispute over Huawei’s cutting-edge Ascend AI processors reveals deep divisions persist between the two economic powers despite recent diplomatic overtures. These processors directly challenge Nvidia’s dominance in advanced chip design and form a key part of President Xi Jinping’s strategy for technological self-sufficiency.
On Wednesday, China’s Commerce Ministry launched fresh verbal attacks, accusing Washington of “abusing export controls to suppress China” and describing US actions as “blatant unilateral bullying and protectionism.” This came in response to last week’s Trump-era policy reversal that removed Biden administration restrictions designed to prevent foreign adversaries from accessing AI chips.
The US Commerce Department initially warned on May 12 that using Huawei’s Ascend chips anywhere globally would violate American export controls – language it later softened by removing “anywhere in the world” from updated guidance. Beijing maintains these modifications remain insufficient, arguing discriminatory measures persist despite wording changes.
China has now threatened legal action against any entity assisting what it calls America’s attempt at a “global ban on advanced Chinese chips.” A ministry statement warned violators could face consequences under China’s Anti-Foreign Sanctions Law while vowing close monitoring of enforcement attempts.
Though no new formal trade talks have been announced, Reuters reports senior US and Chinese trade representatives met privately last Friday during an APEC ministerial gathering in South Korea – suggesting ongoing backchannel communications amid public tensions over semiconductor supremacy.
