Just days after a fragile truce in Geneva, the US re-ignites chip tensions, and China is firing back.
China’s Ministry of Commerce issued a strong statement Monday, accusing the U.S. of violating agreements made during the recent Geneva trade talks. The move follows new U.S. guidance warning companies not to use advanced AI chips made by China’s Huawei, specifically the Ascend series.
What China Says
- The U.S. actions “seriously undermine the consensus reached in Geneva.”
- China calls the measures “discriminatory” and demands the U.S. “correct its wrongdoings.”
- Beijing warned it will take “resolute measures” if Washington continues to “substantially harm” Chinese interests.
What Triggered This?
The U.S. Commerce Department issued a directive stating Huawei’s Ascend AI chips may violate export control laws. American firms were warned not to integrate or rely on Huawei AI hardware, even for domestic projects. The guidance effectively blocks Huawei from participating in AI infrastructure built with U.S.-linked tech.
Why It Matters
- This marks a setback just days after the U.S. and China appeared to ease tensions in Geneva.
- China’s response signals that AI chips — not just semiconductors — are now a top-tier flashpoint in U.S.-China relations.
- Companies operating globally may face increased compliance pressure and supply chain disruptions.
The Geneva talks were meant to cool things off. But with the U.S. doubling down on Huawei-related AI bans, and China vowing retaliation, the tech war is heating up again — fast.
Markets, especially those tied to semiconductors and AI infrastructure, should brace for another round of geopolitical volatility.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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