FX.co ★ China Slams U.S. Huawei Chip Ban as Threat to Trade Truce

China has vehemently criticized a recent U.S. directive concerning specific advanced Huawei chips, asserting that it jeopardizes the trade consensus established between the two nations. This criticism follows closely on the heels of successful U.S.-China discussions in Switzerland, which had resulted in agreements to reduce tariffs. The U.S. Commerce Department has accused Huawei of potentially developing their Ascend chips illegally with U.S. technology. A spokesperson from China’s Commerce Ministry expressed on Monday—reiterating sentiments from a May 15 statement—that "The actions taken by the U.S. seriously undermine the consensus reached during the high-level talks between China and the U.S. in Geneva." The spokesperson urged the U.S. to rectify this decision, labeling the directive as discriminatory and disruptive to the market. Issued on May 13, the directive is part of a comprehensive update to U.S. export controls concerning AI technologies. Initially, it asserted that worldwide usage of these chips breached U.S. export laws, though this was later amended to indicate that such usage poses risks. These rising tensions threaten to cloud the 90-day tariff suspension, which was meant to provide a window for negotiating a more comprehensive agreement.