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yesterday

China Threatens Legal Action Over U.S. Huawei Chip Restrictions

Beijing condemns U.S. export control guidance as 'bullying' and vows to enforce its Anti-Foreign Sanctions Law against those aiding the measures.

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
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Overview

  • The Commerce Department issued updated guidance warning that using Huawei's Ascend AI chips risks violating export controls, citing national security concerns.
  • China's Ministry of Commerce called the U.S. measures discriminatory and announced potential legal retaliation under its Anti-Foreign Sanctions Law against entities enforcing the restrictions.
  • The dispute follows a 90-day tariff truce agreed upon during recent trade talks in Geneva, which now appears overshadowed by escalating tensions over technology restrictions.
  • Nvidia CEO Jensen Huang criticized U.S. chip export controls as counterproductive, arguing they have accelerated China's technological development and hurt American businesses.
  • Both nations are reinforcing their respective export control frameworks, with China emphasizing self-reliance in semiconductor and AI development as it counters U.S. policies.