The United States and China have entered another dispute, and this time, the focus is on Huawei AI chips.
The renewed tension comes shortly after both nations took steps to ease their long-running trade conflict.
On Wednesday, China’s Commerce Ministry issued a warning that threatened legal action against any party that enforces U.S. restrictions on Huawei’s AI chips.
Also read: China is Getting Nvidia AI Chips Despite Ban
The U.S. Reasserts Its Restrictions
On May 13, the Trump administration released an updated set of export guidelines. These reminded global companies that using Huawei’s Ascend AI chips, even outside the U.S., would violate American export rules.
In addition, the Biden administration revoked a previous rule, the “AI Diffusion” policy. Many interpreted this as a signal of tighter enforcement, not relaxation.
China reacted quickly. It said the new guidance damaged the goodwill created during recent trade talks.
China Responds with Legal Threats
China’s statement was direct and forceful. The Commerce Ministry said it would take legal action if any company followed the U.S. restrictions.
The government argued that the rules went against international trade principles. This is not typical diplomatic language.
It suggests that China is prepared to challenge the U.S. at a global level. A case at the World Trade Organization (WTO) is now a possibility.
Softened Wording
Facing international criticism, the U.S. adjusted its earlier statement. The phrase “anywhere in the world” was quietly removed.
However, the U.S. did not revoke the guidance itself. The restriction on Huawei’s AI chips remains in place.
Impacts on Global Businesses
Multinational companies now face a hard decision. On one hand, they must follow U.S. export laws, and on the other, they want to maintain access to China’s huge market.
