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China Warns of Legal Action Over U.S. Chip Restrictions

Beijing threatens sanctions under its Anti-Foreign Sanctions Law as U.S.–China tech tensions escalate during trade negotiations.

A flag of the United States flies next to a flag of China in Chinatown in San Francisco on April 18, 2025.
The nameplate of South Korea's Ministry of Trade, Industry and Energy (Yonhap)
Image
This undated file photo, released by EPA, shows the construction site for Samsung Electronics Co.'s semiconductor plant in Taylor, Texas. (PHOTO NOT FOR SALE) (Yonhap)

Overview

  • China's Commerce Ministry has announced potential legal consequences for companies and individuals complying with U.S. restrictions on Chinese AI chips.
  • The U.S. Bureau of Industry and Security recently warned that Huawei's Ascend chips likely violate U.S. export controls, advising against their use by American firms.
  • Beijing accused the U.S. of discriminatory measures targeting Chinese tech firms and called for adherence to international trade rules.
  • The legal threat marks a new escalation in the U.S.–China tech conflict, with semiconductors now a central focus of their geopolitical rivalry.
  • This dispute unfolds during a 90-day tariff truce negotiated in Geneva, though high-tech issues remain unresolved and contentious.