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2d ago

China Condemns U.S. Huawei Chip Warning, Threatens Retaliation

Beijing accuses Washington of undermining the Geneva trade truce as tensions shift from tariffs to advanced technology restrictions.

U.S. Secretary of the Treasury Scott Bessent, center right, U.S. Trade Representative Jamieson Greer, right, Chinese Vice Premier He Lifeng, center right, and Chinese ambassador to the World Trade Organization Li Chenggang, speak during a bilateral meeting between the United States and China, in Geneva, Switzerland, on Saturday, May 10, 2025. (Martial Trezzini/Keystone via AP)
Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
Image
U.S. Trade Representative Jamieson Greer, left, and U.S. Treasury Secretary Scott Bessent take part in a press conference after two days of closed-door discussions on trade between the United States and China, in Geneva, Switzerland, on May 12, 2025.

Overview

  • The U.S. Commerce Department issued guidance on May 13 warning that using Huawei’s Ascend chips risks violating U.S. export controls.
  • China responded by accusing the U.S. of discriminatory measures that undermine the 90-day tariff pause agreed upon in Geneva earlier this month.
  • Beijing has threatened to take 'resolute measures' to safeguard its interests if the U.S. continues its restrictive actions on Chinese technology.
  • Analysts highlight the shift in the U.S.-China trade conflict from tariffs to a broader contest over advanced semiconductors and AI technologies.
  • Despite the tariff pause, U.S. tariffs remain at 30% and Chinese tariffs at 10%, with President Trump warning of potential tariff increases if no broader deal is reached by the truce's expiration.