Relations between the United States and China have once again taken a turn for the worse, just weeks after attempts to reduce trade tensions. The latest point of contention between the two countries is semiconductors.
China’s ministry has issued a threat of legal action against companies and countries that comply with American export restrictions on Huawei AI-Chips, as reported by bloomberg. This threat stems from directives published by the Donald Trump administration on May 13, which declared the use of Huawei products worldwide as a violation of US export rules, coinciding with the reversal of AI distribution regulations introduced by Joe Biden.
Earlier the same week, China criticized the US for actions that undermine agreements made during negotiations in Geneva aimed at stabilizing relations. Beijing viewed the new directives as a political move that goes against the spirit of reconciliation, leading to accusations of undermining talks by the US.
In response to Chinese criticism, the US Department of Trade revised the wording in the directive, removing the controversial phrase “anywhere in the world,” as reported by bloomberg.