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Tensions flare between the US and China over Huawei's AI chips | TechCrunch

May 21, 2025 - techcrunch.com
Tensions between the U.S. and China have reignited over semiconductor trade issues, despite recent efforts to ease their trade war. China's Commerce Ministry has threatened legal action against those enforcing U.S. export restrictions on Huawei's AI chips. This move comes in response to guidelines issued by the Trump administration on May 13, which, along with revoking Joe Biden's Artificial Intelligence Diffusion rule, stated that using Huawei's Ascend AI chips globally violated U.S. export rules.

China criticized the Trump administration for undermining recent trade discussions with these guidelines. In response to the backlash, the U.S. Commerce Department has amended the original guidance, removing the phrase "anywhere in the world" to potentially ease tensions.

Key takeaways:

  • Tensions between the U.S. and China have resurfaced over semiconductors, despite recent efforts to de-escalate their trade war.
  • China's Commerce Ministry has threatened legal action against those enforcing U.S. export restrictions on Huawei's AI chips.
  • The U.S. issued guidelines on May 13, revoking Joe Biden's Artificial Intelligence Diffusion rule, and highlighting export rule violations involving Huawei's Ascend AI chips.
  • The U.S. Commerce Department has amended its guidance to remove the phrase "anywhere in the world" following criticism from China.
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