Just a few weeks after the U.S. and China made significant steps to de-escalate the growing trade war between the two countries, tensions are flaring again — this time over semiconductors. China’s Commerce Ministry in Beijing released a statement on Wednesday that threatened legal action against anyone who enforces U.S. export restrictions on Huawei’s AI chips, according to reporting from Bloomberg. This statement is in response to a set of “guidelines” released by the Trump administration on May 13 — alongside the revocation of Joe Biden’s Artificial Intelligence Diffusion rule — that reminded companies that using Huawei’s Ascend AI chips “anywhere in the world” was a violation of U.S. export rules. Earlier this week, China said the Trump administration had undermined recent trade talks by issuing that guidance. The U.S. Commerce Department has since changed the wording of its original May 13 guidance to remove the “anywhere in the world” phrase, according to Bloomberg.
The fresh tension between the U.S. and China over semiconductors comes after a period of relative calm following recent trade negotiations. The dispute centers around the use of Huawei’s AI chips and the enforcement of U.S. export restrictions. With China threatening legal action against those who comply with the restrictions, the situation has escalated quickly. The Trump administration’s release of guidelines on May 13, which were later revised by the U.S. Commerce Department, has further fueled the conflict. The removal of the contentious phrase “anywhere in the world” has not fully assuaged China’s concerns, indicating that the semiconductor issue remains a sticking point in U.S.-China relations.
As tensions rise over semiconductor exports, the implications for global trade and technology are significant. The back-and-forth between the U.S. and China on this issue highlights the complexities of international trade agreements and the challenges of enforcing export restrictions. The Trump administration’s decision to revise its guidelines underscores the delicate balance between national security concerns and economic interests. The evolving situation between the two economic powerhouses raises questions about the future of trade relations and the impact on the semiconductor industry.
