Huawei’s Advanced AI Chips Ignite Diplomatic Clash Between Washington and Beijing

22.05.2025

Just weeks after the U.S. and China took steps toward easing trade tensions, a new dispute has emerged—this time centered on semiconductor technology.

On Wednesday, China’s Commerce Ministry issued a strong response to recent U.S. actions, threatening legal action against any party that enforces American export restrictions targeting Huawei’s AI chips. This move comes in reaction to new guidelines released by the Trump administration on May 13, which emphasized that using Huawei’s Ascend AI chips, even outside the U.S., would breach export laws.

Compounding the situation, the U.S. had also rolled back the Biden-era Artificial Intelligence Diffusion rule, further straining already fragile relations. China criticized the updated U.S. guidance, claiming it undermines progress made in recent trade negotiations.

Following the backlash, the U.S. Commerce Department adjusted the wording of its directive, removing the controversial “anywhere in the world” clause. Despite the revision, tensions remain high, with both nations signaling a harder stance on advanced technology control.

The dispute underscores the increasingly strategic role of AI chips in global power dynamics, with Huawei once again becoming a flashpoint in the ongoing tech rivalry between Washington and Beijing.