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U.S.-China AI Chip Dispute Escalates as Beijing Threatens Legal Action

Washington's global ban on Chinese AI chips citing U.S. technology sparks strong retaliation from Beijing, undermining a fragile trade truce.

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Overview

  • The United States has imposed a global ban on advanced AI chips made by Chinese companies, citing the use of U.S.-origin technology in Huawei's Ascend 910 chips.
  • China has condemned the ban as unilateral intimidation and warned that companies complying with U.S. measures could face criminal prosecution under its anti-sanctions law.
  • The ban was announced during a 90-day U.S.-China trade truce, which Beijing claims has been undermined by the new restrictions.
  • A U.S. Commerce Department directive initially suggested that using Huawei chips 'anywhere in the world' could violate export controls, though this phrasing was later removed.
  • Analysts suggest China's strong response reflects its determination to resist U.S. pressure in the ongoing competition over AI and semiconductor technology.