Just weeks after the U.S. and China made progress in de-escalating their ongoing trade war, new tensions have emerged, this time focusing on semiconductors. On Wednesday, China’s Commerce Ministry issued a statement threatening legal action against anyone who enforces U.S. export restrictions related to Huawei’s AI chips. This warning highlights the fragility of the recent trade dialogue between the two nations.
The situation escalated following the release of a set of guidelines by the Trump administration on May 13. This guidance, which rescinded Joe Biden’s previous Artificial Intelligence Diffusion rules, reminded companies that using Huawei’s Ascend AI chips anywhere globally would be a violation of U.S. export regulations. The timing of these guidelines has not gone unnoticed, as earlier this week, China accused the U.S. of undermining the recent trade talks by issuing such restrictions.
In response to the backlash and heightened tensions, the U.S. Commerce Department took action to adjust its original guidance. They revised the wording to eliminate the phrase “anywhere in the world,” a move aimed at easing some of the pressure and clarifying the restrictions. The back-and-forth over semiconductor exports underscores the ongoing complexities in U.S.-China relations and the trade landscape.
As both nations navigate their economic strategies, it remains to be seen how this latest round of tensions will impact future discussions and the broader trade truce they have been striving to maintain.