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China warns legal action against US enforcers restricting Huawei AI chips

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China can reportedly hit back at the US with legal action if it continues to enforce restrictions on Huawei AI chips. The Beijing government took a new measure to help the Ascend chipmaker amid the ongoing conflicts due to US sanctions.

US has recently announced to ban on Huawei Ascend AI chips worldwide. The foreign authorities said that using China-made chips poses a threat to data security.

Earlier, China reacted to this matter, saying that the US is abusing export controls and even undermining its trade talks. The Chinese government said to fight for the legitimate rights of its native firms if the US does not correct its mistakes.

But today, China warned US enforcers that restricting Huawei AI chips can now lead to legal action. It has said the US’s latest move is unilateral bullying and protectionism.

“The US abuses export controls to contain and suppress China, which violates international law and basic norms of international relations. This severely harms the legitimate rights and interests of Chinese enterprises and undermines China’s development interests.”

According to Bloomberg, those organizations or firms that impose a ban on Huawei AI chips will face consequences under the Chinese anti-sanction law.

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China warns legal action against US enforcers restricting Huawei AI chips (Image Credits: Huawei)

What is China’s anti-sanction law?

China passed a significant rule in 2021 called the Anti-Foreign Sanctions Law. Under this regulation, anyone imposing an unnecessary ban against China or Chinese firms will be subject to prosecution and have to pay compensation for losses incurred.

As of now, China will closely monitor the US measures and take action to defend its interests. It would be worth seeing when China will make a bold step in this case.

While Huawei was pouring efforts to improve its AI chips and achieve even better results over Nvidia H20 chips, the US announced new guidelines prohibiting the use of Ascend processors worldwide.

The US took this step in the name of security and risk to users’ privacy. At the same time, it mentioned that anyone using Huawei AI chips will face penalties and other consequences.

Huawei has reportedly been planning to initiate the mass shipment of the Ascend 910C this month and boost the production of the Ascend 910D chip. After these US-China tensions, how Huawei will achieve its goals would be worth looking at.

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