US-China Trade Tensions Flare Over Huawei AI Chips
Recent progress in de-escalating the US-China trade war is threatened by renewed tensions over Huawei's AI chips. China's Commerce Ministry warned of legal action against enforcement of US export restrictions targeting Huawei's Ascend chips.
This follows new US guidelines issued by the Trump administration, which initially stated that using Huawei's AI chips "anywhere in the world" violated US export rules. These guidelines coincided with the revocation of the Biden administration's Artificial Intelligence Diffusion rule.
China criticized the US, stating the new guidelines undermined recent trade talks held in Geneva. The US Commerce Department subsequently revised its guidance, removing the "anywhere in the world" clause.
The dispute centers around Huawei's Ascend AI chips and US efforts to restrict their global use. China views these restrictions as an escalation of the ongoing trade conflict.
This renewed tension casts doubt on the fragile truce reached between the two nations just weeks ago. The situation underscores the ongoing challenges in US-China relations, particularly regarding technology and trade.
