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China Blasts U.S. Over Chip Export Restrictions, Accuses Washington of Trade Deal Violations
Tensions between the U.S. and China continue to escalate as Beijing criticizes Washington for imposing what it calls “discriminatory restrictions” in the semiconductor industry. The latest accusations follow renewed U.S. export controls and a claim by former President Donald Trump that China violated a preliminary trade agreement.
“China has repeatedly expressed concern over the U.S. abusing export control measures in the semiconductor sector,” said Liu Pengyu, spokesperson for China’s U.S. Embassy, in a statement to NBC News.
This latest dispute comes amid deepening hostilities between the two superpowers over artificial intelligence, advanced chip technologies, and the infrastructure that supports them.
China Responds to Trump’s Trade Violation Claim
President Trump took to social media early Friday to accuse China of breaching a trade deal, while U.S. Trade Representative Jamieson Greer told CNBC that China was “slow rolling its compliance.”
The comments follow a May 12 agreement between the two nations to pause most tariffs for 90 days after high-level economic talks in Geneva, Switzerland.
In response, China urged the U.S. to roll back what it sees as unfair and unilateral trade moves.
“We urge the U.S. to immediately correct its erroneous actions and cease discriminatory restrictions,” Liu said.
Semiconductor Controls Under Fire
The embassy’s statement didn’t cite specific actions, but the controversy likely refers to recent U.S. crackdowns on AI-related chip exports, particularly involving Chinese tech giant Huawei.
Earlier this month, China condemned U.S. export bans targeting Huawei’s AI chips. This is part of a broader U.S. policy — dating back to the Trump administration — aimed at limiting China’s access to advanced chip technology for national security reasons.
In 2019, the Trump administration effectively cut Huawei off from U.S. tech, forcing the company to exit the smartphone market until it could build its own chips. In 2022, the Biden administration expanded those restrictions to block China’s access to top-tier AI chips from companies like Nvidia and AMD.
U.S. Restrictions Expand, Industry Pushes Back
The crackdown has intensified. Earlier this week, chip software providers Synopsys and Cadence Design Systems confirmed they received letters from the U.S. Commerce Department instructing them to halt sales to Chinese customers.
Nvidia, whose chips are central to AI development, has been especially vocal in opposing the restrictions. The company said the rules would backfire, forcing China to build its own semiconductor industry independent of U.S. technology.
One major casualty: Nvidia’s H20 chip, which was designed specifically to comply with 2022 export limits. The U.S. recently barred its sale to China, prompting Nvidia to warn that it would lose around $8 billion in sales this quarter. The company now holds $4.5 billion in unsellable inventory.
“The U.S. assumed China couldn’t make AI chips,” said Nvidia CEO Jensen Huang during the company’s latest earnings call. “That assumption was always questionable — now it’s clearly wrong.”
Trump Administration Reverses Broad AI Chip Rule
In a surprising turn, the Trump administration recently revoked the Biden-era “AI diffusion rule,” which would have imposed broad export controls on many countries. A simpler, more targeted rule is expected to be introduced in the coming months.
Conclusion
The intensifying battle over semiconductor technology highlights the strategic importance of AI and advanced computing in global power competition. As China and the U.S. trade accusations and impose restrictions, the broader implications for global tech supply chains and innovation remain uncertain.