China accused US of sabotaging the just-signed trade truce by warning against the use of Huawei’s Ascend chips. The advisory by the Trump administration, in which they warned that the use of these chips anywhere globally may be a contravention of US export controls, ignited the outrage.
China stated that the move dented confidence and affected the work done in the ongoing economic negotiations, terming it as a violation of the Geneva consensus. This is following days after the two countries agreed to lower tariffs by 115% for ninety days in a bid to ease trade tensions.
US Advisory Sparks Diplomatic Flare-Up
The United States last week issued a stern warning. It accused Huawei’s Ascend 910B, 910C, and 910D chips of possibly being developed in violation of US export regulations. The regulations underscored that it would be unlawful to utilize these chips “anywhere in the world.” China reacted quickly and strongly.
Beijing accused Washington of betraying trust established during high-level Geneva talks in an official communique. Through the China-US economic and trade consultation mechanism, China said it had raised the issue on multiple occasions.
Language Shift Fails to Satisfy China
The Trump administration backed down after it faced criticism. However, the advisory was rephrased to focus on “the risks of using PRC advanced computing ICs” and its international scope was removed. Beijing remained unmoved by this action.
Beijing avoided referring to the US as “a successor to the old China” but instead demanded that the US “correct its mistakes” and warned of potential consequences should the mutual trust between the two powers further deteriorate.
Tech and Trade at a Crossroads
The Huawei dispute is a symptom of a broader issue. What the United States wants to do is hinder China’s development in the fields of artificial intelligence and high computing. It does this through aggressive export controls that deny China access to intellectual property and the equipment needed for chip making.
However, China has responded by ramping up domestic innovation. It just keeps on making strong chips even under sanctions. Huawei’s Ascend series is one such example of China’s determination and technological capabilities.
Trust on Thin Ice
The newest schism jeopardizes the stability of the 90-day trade ceasefire. China views the pressure from the US as part of a broader gambit to slow down its technological growth. Washington, in turn, is worried about the strategic dangers posed by Chinese technological progress in artificial intelligence and semiconductors.
As each side hardens, future trade collaboration is at risk and confidence is still brittle.
