China accuses President Trump’s administration of deliberately sabotaging trade talks by threatening global users of Huawei’s advanced AI chips, further escalating the technology cold war between the world’s two largest economies.
Key Takeaways
- The US Commerce Department issued and then revised guidance suggesting that using Huawei’s Ascend AI chips could violate US export controls, drawing accusations of discrimination from China.
- Chinese officials warned these actions undermine consensus reached during high-level Geneva trade talks and threaten to derail ongoing negotiations.
- Despite softening its language, the Trump administration continues restricting technology exports to China as part of its broader strategy to limit Chinese semiconductor advancement.
- China argues US protectionist measures ultimately harm global supply chains, innovation, and America’s own industrial competitiveness.
- The dispute highlights the escalating technological competition between the US and China for dominance in critical AI and semiconductor sectors.
Commerce Department’s Controversial Guidance
The latest confrontation between Washington and Beijing centers on guidance issued by the US Commerce Department regarding Huawei’s Ascend AI chips. Initially, the department warned that using these Chinese-made chips might violate US export controls “anywhere in the world” – language that particularly angered Chinese officials. While the Trump administration later revised this guidance to remove the worldwide reference, Beijing maintains that the fundamental position remains discriminatory and disrupts market operations.
“The potential consequences of allowing US AI chips to be used for training and inference of Chinese AI models,” remains a central concern for the Commerce Department, even after modifying its guidance language to focus on the “risks of using Chinese advanced computing ICs” rather than making global jurisdictional claims.
China’s Strong Response
China’s Ministry of Commerce has vocally protested these restrictions, arguing they represent an abuse of export controls that interferes with Chinese companies’ legitimate use of domestically developed technology. Beijing claims to have “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.”
“Tripping others won’t make you run faster,” stated a MOFCOM spokesperson, suggesting that American attempts to hamstring Chinese technological development will ultimately backfire on US competitiveness.
Strategic Impact on Global Tech Landscape
The timing of this dispute is particularly significant as it coincides with Computex, Asia’s largest technology conference. Industry experts note that while Washington’s targeting of Huawei threatens Chinese tech advancement, it creates opportunities for Taiwan to forge deeper partnerships with American chipmakers. This geopolitical maneuvering is evident in recent announcements from Nvidia regarding plans to build an AI supercomputer in Taiwan and strengthen collaborations with Taiwanese semiconductor giants Foxconn and TSMC.
“Washington’s targeting of Huawei could offer Taiwan more opportunities to strike deals with American chipmakers. At the conference Monday, Nvidia announced plans to build an AI supercomputer on the island and deepen its partnerships with Taiwan-based chip firms Foxconn and TSMC.”
Long-Term Implications
This technology standoff represents far more than a temporary trade dispute. The Trump administration’s persistent efforts to restrict Huawei’s access to advanced semiconductor technology, despite some regulatory adjustments, reflects America’s strategic intent to maintain technological supremacy. For Huawei, these barriers complicate efforts to develop cutting-edge semiconductors for both AI applications and smartphones, areas where China has been rapidly advancing despite sanctions.
Chinese officials have consistently argued that US actions destabilize global supply chains by overstretching national security concepts. The Ministry of Commerce warns that such protectionist measures ultimately weaken industrial competitiveness across borders and impede innovation. Beijing has vowed to take necessary measures to protect Chinese interests and development rights, suggesting this technological cold war will continue intensifying unless diplomatic breakthroughs occur.
