US Commerce Department’s threats against global firms using Huawei’s Ascend AI chips have sparked a furious response from China, potentially derailing crucial trade negotiations as President Trump’s administration doubles down on restricting Beijing’s access to advanced semiconductor technology.
Key Takeaways
- China accuses the Trump administration of deliberately sabotaging trade negotiations with its hardline stance on Huawei’s AI chips, violating consensus reached during recent Geneva talks
- The US Commerce Department issued guidance warning global companies that using Huawei Ascend chips breaches US export controls, later revising but maintaining restrictive language
- Beijing claims US actions harm not only Chinese firms but also global semiconductor supply chains and technological innovation
- While targeting Chinese technology, the US is simultaneously strengthening partnerships with Taiwan-based chip manufacturers, potentially reshaping global semiconductor production
- China has vowed to protect its interests and technological development rights, warning that these tensions could completely derail ongoing trade talks
China Accuses US of Undermining Trade Negotiations
The Chinese government has launched a scathing critique of the Trump administration, claiming it deliberately undermined recent high-level trade talks by issuing restrictive guidance on Huawei’s Ascend AI chips. According to Chinese officials, the US Commerce Department’s actions directly contradict the consensus reached during bilateral negotiations in Geneva. The controversy centers on the department’s warning that companies using Huawei’s advanced AI chips could face criminal investigations for violating US export controls, a move Beijing describes as discriminatory and disruptive to global trade.
“Tripping others won’t make you run faster,” a spokesperson from China’s Ministry of Commerce (MOFCOM) in a pointed criticism of US trade policies.
The dispute intensified when the Commerce Department initially issued guidance stating that using Huawei Ascend chips breaches US export controls “anywhere in the world.” Following immediate Chinese objections, the department revised its statement to focus on “the potential consequences of allowing US AI chips to be used for training and inference of Chinese AI models,” though China maintains that even the revised guidance remains fundamentally discriminatory and continues to disrupt market operations. This back-and-forth exchange reveals the deep tensions underlying US-China technology relations.
Strategic Semiconductor Battle Intensifies
President Trump’s administration has maintained and strengthened restrictions on technology exports to China, viewing semiconductor supremacy as crucial to national security and economic dominance. The dispute over Huawei’s chips represents the latest chapter in a broader technological cold war, with Chinese officials accusing the US of “overstretching national security concepts” and implementing protectionist measures that ultimately weaken America’s own industrial competitiveness. Beijing claims these actions not only harm Chinese companies but also disrupt global semiconductor supply chains and innovation.
Beijing has “negotiated and communicated with the US at all levels through the China-US economic and trade consultation mechanism, pointing out that the US’s actions seriously undermined the consensus reached at the high-level talks between China and the US in Geneva.”
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Despite these objections, the Trump administration shows no signs of relaxing its stance on Chinese technology. The Commerce Department and White House have not responded to requests for comment on China’s accusations, signaling a continued commitment to restricting China’s access to advanced semiconductor technologies. This strategic silence underscores the administration’s determination to maintain technological dominance, even at the cost of further straining diplomatic relations with Beijing.
Taiwan Benefits as US-China Chip Rivalry Heats Up
As tensions between Washington and Beijing escalate, Taiwan appears positioned to benefit significantly from the technological standoff. Industry analysts note that “Washington’s targeting of Huawei could offer Taiwan more opportunities to strike deals with American chipmakers,” with Nvidia recently announcing plans “to build an AI supercomputer on the island and deepen its partnerships with Taiwan-based chip firms Foxconn and TSMC.”
The geography of chip manufacturing has become a central topic at Computex, Asia’s largest technology event, reflecting the growing importance of semiconductor production in geopolitical strategy. By strengthening partnerships with Taiwanese manufacturers while restricting Chinese technological development, the Trump administration appears to be deliberately reshaping global semiconductor supply chains to reduce dependence on China. This strategy aligns with broader efforts to maintain US technological leadership while limiting China’s ability to develop competing advanced technologies.
Future of US-China Trade Relations
The current dispute significantly complicates Huawei’s ongoing efforts to develop advanced semiconductors for AI and smartphones, despite the company’s determined push to overcome US sanctions. China has emphatically demanded that the US “correct its wrongdoing” regarding restrictions on Huawei chips and warned that failure to do so could completely derail the fragile progress made in recent trade talks. With Beijing vowing to take measures to protect its interests and development rights, the stage appears set for continued confrontation rather than cooperation.
President Trump’s firm stance on Chinese technology reflects his administration’s commitment to protecting American technological advantages and intellectual property. As global companies navigate these complex restrictions, they must carefully consider the legal implications of using Chinese AI chips, particularly those from Huawei. The outcome of this technological standoff will likely shape not only US-China relations but also the future development of artificial intelligence and advanced computing technologies worldwide.
