Tensions between Washington and Beijing have escalated further as China denounced new US export control measures targeting Huawei's artificial intelligence chips. The Chinese Ministry of Commerce criticized the restrictions as unlawful and warned of retaliatory action under its Anti-Foreign Sanctions Law.

At a press briefing on Thursday, Ministry spokesperson He Yongqian stated that the latest US actions threaten China's technological progress and violate established international standards. "China holds that the US abuse of export controls to contain and suppress China violates international law and the basic norms of international relations. It gravely infringes upon the legitimate rights and interests of Chinese enterprises and harms China's development interests," he said.

The remarks follow recent guidance from the US Commerce Department's Bureau of Industry and Security, which declared that using Huawei's Ascend 910B, 910C, and 910D chips anywhere in the world breaches US export controls. These chips are believed to have been developed with US-origin technology, thus falling under American regulatory oversight regardless of where they are manufactured or deployed.

In response, Chinese officials reiterated their opposition to any policy that jeopardizes the global semiconductor ecosystem. "China opposes restrictions that undermine the stability of the global semiconductor industrial and supply chains," He added, warning that Beijing would "take measures to protect its legitimate rights and interests."

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Chip Clash

On Wednesday, the Ministry of Commerce signaled that enforcement of such measures could trigger legal consequences for entities involved. Organizations and individuals aiding the implementation of US restrictions on Chinese chips "could face legal liability under the Anti-Foreign Sanctions Law," the ministry stated.

The Financial Times recently reported that the Trump administration is targeting Huawei's AI chips due to their links to US-developed software and hardware, which would normally require hard-to-obtain licenses under export rules. These controls build on a wider US policy, dating back to October 2022, that restricts global access to advanced semiconductors by any entity relying on American technology.

Huawei has been under heavy US sanctions since May 2019, when it was added to the Commerce Department's Entity List. The move cut it off from American suppliers and led companies like Google to suspend cooperation involving proprietary technology.

Read more: China’s Huawei develops new AI chip, seeking to match Nvidia

Despite US sanctions, Huawei has managed to remain resilient, adapting its business strategy to reduce dependence on American technologies. The company shifted focus toward developing in-house chip capabilities, expanding its footprint in cloud services, digital infrastructure, and electric vehicles.

Its HarmonyOS operating system, developed as an alternative to Android, has also gained traction in China and select international markets.