US and China: New dispute over artificial intelligence chips

Questionable US Warns Others About AI Chips from Huawei

2025-05-26 From Peter Königsreuther | Transalted by AI 1 min Reading Time

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After the tariff dispute, the US and China are now arguing over the issue of chips for artificial intelligence (AI), after America warned about Huawei products ...

It seems there's no end when it comes to the US and China getting into conflicts. After the tariff dispute de-escalated, there's now contention over AI chips from Huawei, as China claims the US is using unfair methods to block trade.(Image: Huawei) — It seems there's no end when it comes to the US and China getting into conflicts. After the tariff dispute de-escalated, there's now contention over AI chips from Huawei, as China claims the US is using unfair methods to block trade.
(Image: Huawei)

The trade dispute between the USA and China may be paused, but now new troubles are looming around the trade with AI chips. Beijing is sharply protesting against US warnings to third countries not to buy advanced chips from the tech giant Huawei. The Chinese Ministry of Commerce described a corresponding US directive as unilateral bullying and protectionism—a behavior that seriously impacts the global semiconductor industry and supply chains.

Beijing Threatens the US With Countermeasures

More specifically, the US government recently warned companies worldwide against using the so-called Ascend AI chips from the company Huawei based in Shenzhen, southern China. According to Washington, their use could violate US export controls. The Ministry of Commerce in Beijing subsequently accused the USA of denying other countries the right to develop in key areas such as artificial intelligence and high technology. Furthermore, organizations or individuals implementing or supporting these US measures could be held accountable under Chinese law. China thus urged the USA to immediately correct their "wrong decisions" and respect international economic and trade rules. They stated they would closely monitor developments and react decisively, if necessary, to protect the legitimate rights and interests of Chinese companies.

The US Wants to Block China in AI Technology

The USA has long been trying to prevent advanced chips from the US company Nvidia from reaching the Chinese market. Consequently, Huawei is vigorously advancing the development of its own AI chips. However, with the new US regulations, it could become more challenging for Huawei to sell its chips to third countries. Only recently had the USA and China reached a temporary agreement in Geneva to reduce tariffs in their ongoing trade dispute. According to some observers, the new US restrictions could now jeopardize this progress.

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