Tensions between China and the United States flared anew Monday after Beijing accused Washington of undermining a tentative trade breakthrough by issuing a fresh warning against the use of Chinese semiconductors, specifically targeting Huawei's Ascend AI chips.
China's Ministry of Commerce denounced the U.S. Commerce Department's alert, calling it "discriminatory" and "market distorting." A spokesperson for the ministry stated, "China urges the U.S. to immediately correct its wrong practices." The spokesperson warned that if the United States "continues to substantially damage China's interests, China will take resolute measures to safeguard its legitimate rights and interests."
The sharp remarks followed the Commerce Department's Bureau of Industry and Security alert last Tuesday, which warned of "the risks of using PRC advanced-computing ICs, including specific Huawei Ascend chips," claiming they were likely developed or produced in violation of U.S. export controls.
That guidance came just two days after a 90-day trade truce was reached in Geneva between U.S. and Chinese officials, halting the tariff escalation that had previously slowed cross-border commerce. President Donald Trump, speaking after the agreement, said the U.S. would reduce tariffs from 145% to 30% for the duration of the pause but warned that duties could return if a broader deal fails to materialize.
Treasury Secretary Scott Bessent described the Geneva negotiations as "very constructive," adding that the outcome suggested "perhaps the differences were not so large as maybe thought."
Beijing's response, however, indicated that the new chip advisory may have damaged that optimism. "The U.S. abuses export control measures, tightens control over Chinese chip products on trumped-up charges, and even interferes with Chinese companies using chips produced in China," the Commerce Ministry said.
Labeling the move as "typical unilateral bullying behavior," the spokesperson further warned that "the U.S.'s actions seriously damage the legitimate rights and interests of Chinese companies, seriously threaten the security and stability of the global semiconductor supply chain, and have a serious impact on global scientific and technological innovation."
A statement from the Commerce Ministry reiterated Beijing's position that such curbs were not only baseless but counterproductive: "Trying to trip others won't make oneself run faster."
Vice Commerce Minister Li Chenggang and U.S. Trade Representative Jamieson Greer, who led their respective delegations during the Geneva talks, met again last week on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea. No joint statement was released from that meeting.
The White House did not immediately respond to a request for comment.
