US-China tensions escalate over Huawei AI chips restrictions

In a dramatic turn of events, the tensions between the United States (US) and China are reportedly rising once again, this time centred around high-stakes disputes in the semiconductor industry.

Within a few weeks after both countries appeared to be making progress toward easing their prolonged trade war, a new conflict emerged involving Huawei’s artificial intelligence (AI) chips.

According to Bloomberg, China’s Ministry of Commerce has released a statement expressing strong opposition to new US export rules targeting Huawei.

The ministry has warned that it would consider legal action against any entity that enforces these restrictions.

The warning is seen as a response to recent measures announced by the US President Donald Trump administration, which have reignited friction between the two global superpowers.

Bloomberg reported that the US government issued new guidelines on May 13, advising companies that using Huawei’s Ascend AI chips, even outside US borders, could violate American export control laws.

These rules were introduced alongside the reversal of the Joe Biden-era Artificial Intelligence Diffusion rule, which had allowed for more lenient treatment of AI technology exports.

However, China has criticised the move, claiming that it undermines recent diplomatic efforts aimed at stabilising trade relations.

Following the backlash, the US Commerce Department later amended the wording in its May 13 guidance, removing the phrase “anywhere in the world.”

Despite this revision, the issue remains a significant point in US-China relations, underscoring the fragile nature of their ongoing trade discussions.