China accuses US of violating trade agreements with Huawei chip ban

US has played an abusive trade control move against the Huawei AI chip business, as per China. In the latest edition, the Chinese government said the Trump administration is violating trade agreements between China and its allied countries.

A spokesperson for the Chinese Ministry of Commerce had a talk with the media on Monday and blamed the US for screwing up trade agreements in Geneva, Switzerland.

The story began last week when the US and China shook hands on a treaty over the ongoing trade war, ahead of the Huawei chip ban across the world. Both countries made efforts to initiate peace in Geneva.

During the trade truce, both countries agreed to reduce tariff charges by 115% for 90 days. But later that week, the Trump administration banned Huawei AI chips worldwide, saying – the usage of the Ascend 910 series will lead to penalties.

China said that it had talked and negotiated with the US at all levels, but the latest step taken by the foreign authorities seriously undermined the consensus reached at high-level talks between China and the US in Geneva.

The spokesperson said:

“China urges the US to immediately correct its wrong practices. If the US insists on its way and continues to substantially damage China’s interests, China will take resolute measures to safeguard its legitimate rights and interests.”

According to the details, China even called the US Commerce Department’s guidance discriminatory and market-distorting. It is now demanding that the foreign authorities correct their abuse of export controls and stop targeting Chinese firms.

The US has banned Huawei AI chips worldwide as it believes that Chinese advanced computing ICs and Ascend processors are risky. Regarding the China trade deal that took place in Geneva, Trump said that it could have dialed back up if a broader trade deal couldn’t be reached by the time the pause expires.

China’s Ministry of Commerce spokesperson further said that the US not only tightens control over Chinese chip products, but also interferes with Chinese companies using chips produced in China. The authorities are now overreacting, which is a typical unilateral bullying behavior, and China firmly opposes it.

He added that the practice of using unilateral protectionism to contain and isolate other countries will ultimately undermine the competitiveness of the US industry, resulting in the US shooting itself in the foot.

“The U.S.′ actions seriously damage the legitimate rights and interests of Chinese companies, seriously threaten the security and stability of the global semiconductor supply chain, and have a serious impact on global scientific and technological innovation.”

China accuses the US of violating trade agreements with the Huawei chip ban (Image Credits: Huawei)

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