US-China tech tensions are flaring again, with Beijing threatening legal action against anyone enforcing Washington’s restrictions on Huawei Technologies Co’s (華為) chips, casting a shadow over a recent trade truce and efforts to sustain dialogue.
The Chinese Ministry of Commerce said in a statement yesterday that entities could breach its Anti-foreign Sanctions Law by assisting in the US curbs, without specifying the punishment.
The move escalates the tech dispute even as Chinese officials express their wish to improve relations.
Photo: AFP / FDFA / Martial Trezzini
The US Department of Commerce had warned that using the Huawei semiconductors “anywhere in the world” would violate US export controls before later removing the place reference.
China has said that the US administration’s actions on chips undermined recent trade talks in Geneva, Switzerland.
Wu Xinbo (吳心伯), director at Fudan University’s Center for American Studies in Shanghai, said that the amendment suggests continued contact between the two sides, at least at the working level.
“The challenge is how both sides can keep the momentum gained from the Geneva talks,” Wu said. “I hope there can be high-level talks next month, but nothing’s guaranteed at the moment.”
On the same day of the Chinese warning, Chinese Vice Minister of Foreign Affairs Ma Zhaoxu (馬朝旭) told US Ambassador to China David Perdue that Beijing hopes the US would work together to promote ties.
This followed a meeting the day before between People’s Bank of China Governor Pan Gongsheng (潘功勝) and former US secretary of the treasury Timothy Geithner, now chairman of Warburg Pincus LLC, according to a brief statement from the central bank.
In a separate sit-down between Chinese Minister of Foreign Affairs Wang Yi (王毅) and Asia Society chief executive officer Kang Kyung-wha on Tuesday, China’s top diplomat said that China and the US should work toward finding the right way to get along by fostering positive engagement in the Asia-Pacific region first.
The flurry of exchanges comes after high-level talks in Switzerland earlier this month, where both nations agreed to a 90-day pause in some reciprocal tariffs, although substantial levies remain on Chinese imports.
These interactions appear to be part of Beijing’s effort to maintain dialogue while conflicts concerning US curbs on semiconductors and China’s control over critical minerals show little sign of resolution.
China’s alleged role in fentanyl’s flow into the US also remains a significant point of contention, with US officials pressing China for greater cooperation.
The simultaneous trade thaw and persistent dispute over access to technology underscore the challenge of resolving the economic conflict between the world’s two largest economies.
“My instinct is that tariffs are on a somewhat independent track from weaponizing supply chains. The logic is different,” said Graham Webster, who leads the DigiChina project at the Stanford University Cyber Policy Center.
Webster said that if the countries reach a more comprehensive trade deal, “the tech restrictions on one or both sides will be on the table.”
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