U.S.-China Chip Dispute Threatens Fresh Trade Truce

Tensions between the U.S. and China have resurfaced just days after a temporary trade truce, following a new warning from the U.S. targeting Chinese tech giant Huawei. On Monday, China’s Ministry of Commerce criticized a U.S. Commerce Department advisory that flagged security risks related to Huawei’s Ascend line of AI chips. The advisory also warned that using such chips could violate U.S. export controls.

Chinese officials argued the U.S. warning "seriously undermines" the consensus reached during high-level talks in Geneva last week. The agreement included a 90-day de-escalation period during which both nations committed to easing tariffs. The U.S. had agreed to reduce tariffs to 30% from 145%, while China lowered its own to 10% from 125%.

Beijing accused Washington of acting in bad faith and urged the U.S. to "correct its mistakes." The Ministry of Commerce warned that if the U.S. continues to harm Chinese interests, China will respond with “firm measures” to protect its rights.

Huawei, long blacklisted by the U.S., remains central to China's push for technological self-sufficiency, especially in advanced computing and AI chip production. The latest U.S. restrictions could further isolate Huawei from global chip supply chains, intensifying the ongoing tech war.

This development casts doubt on the short-lived trade ceasefire and may reignite broader economic tensions between the two superpowers. As both countries grapple with national security and technological dominance, the fragile nature of recent negotiations becomes increasingly evident. Analysts warn that unless diplomatic efforts resume, the tech conflict could spill over into wider economic disruption.