Tensions are already rising over the future of Beijing’s most sophisticated domestic chips, only days after the US and China announced a temporary truce over tariffs. Beijing has frequently criticised Washington over the last week for cautioning businesses against utilising AI processors manufactured by Huawei, the country’s leading tech company. It has even been said that the Trump administration is “undermining” an agreement made during previous trade negotiations in Geneva, when all parties decided to temporarily lower tariffs and utilise 90 days to negotiate a more comprehensive agreement.
The dispute over Huawei’s cutting-edge semiconductors reminds us that despite the encouraging remarks made by US and Chinese negotiators last week, China’s Commerce Ministry released its most recent broadside on Wednesday, accusing the US of “typical acts of unilateral bullying and protectionism” and “abusing export controls to suppress and contain China.
China was reacting to the Trump administration’s declaration last week that it was lifting restrictions imposed by the Biden administration to prevent foreign enemies from obtaining AI chips.
The US Commerce Department warned businesses that “using Huawei Ascend chips anywhere in the world would violate US export controls” in an advisory released on May 12 as part of that statement. Subsequently, the department removed the reference to “anywhere in the world” in an amended version of the statement.
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