China blasts new US rule banning use of Huawei's Ascend advanced computer chips

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Policy shift in U.S. AI chip exports: Catalyst for China's homegrown innovation

Huawei Launches World's Most POWERFUL AI Chip SHOCKING The U.S.!

China has blasted a new U.S. rule against use of Ascend computer chips made by Huawei Technologies anywhere in the world, chafing Thursday against the limitations of a temporary truce in the trade war between the two biggest economies.

Beijing moved ahead, however, with fulfilling its promise to lift retaliatory measures it imposed after U.S. President Donald Trump escalated his trade war, raising tariffs on Chinese products to as high as 145%. One key action was to remove a ban on exports to the United States of minerals known as rare earths that are used in many high-tech products.

Despite the deal struck last weekend in Geneva, frictions remain.

Earlier this week, the U.S. Commerce Department's Bureau of Industry and Security issued guidance saying that Huawei's Ascend semiconductors are subject to U.S. export controls, on the basis that they are thought to employ U.S. technology.

“These chips were likely developed or produced in violation of U.S. export controls,” it said in a statement on its website, adding that “the use of such PRC advanced computing ICs risks violating U.S. export controls and may subject companies to BIS enforcement action.”

China's Commerce Ministry responded that the move was "not conducive to long-term, mutually beneficial, and sustainable cooperation and development between the two countries. The Chinese side urges the U.S. side to immediately correct its erroneous practices,” said ministry spokesperson He Yongqian.

Huawei's Ascend chip is central to China's effort to build its own capacity to build leading edge computer chips and other technologies. Analysts say use of the chip in China's DeepSeek artificial intelligence effort reflects a potential challenge for Nvidia in the global AI market.

He also lashed out against U.S. tariffs on imports of Chinese steel and aluminum, which have not gotten a reprieve after Beijing and Washington agreed to their pause in many tariff increases.

She said the U.S. should give up its use of Section 232 of the Trade Expansion Act of 1962, which gives the president power to impose tariffs on other countries on national security grounds.

In February, Trump drew on that authority to restore 25% tariffs on steel and aluminum that he had imposed during his first term in office.

Speaking at a weekly ministry briefing, He urged the US to end the higher tariffs “as soon as possible."

The 30% levy that America is now imposing on Chinese goods includes an existing 20% tariff intended to pressure China into doing more to prevent the the synthetic opioid fentanyl from entering the United States. It also includes the same 10% “baseline’’ tariff Trump has slapped on imports from most of the world’s countries. The 30% tax comes on top of other levies on China, including some left over from Trump’s first term and kept by former President Joe Biden.

China is imposing a 10% tariff on U.S. products during the 90-day negotiating period.

 AP by ELAINE KURTENBACH

China absolutely won’t accept suppression, vows to safeguard Chinese firms’ right, FM on US curbs on Huawei AI chips

Chinese Foreign Ministry Spokesperson Lin Jian

In response to a recent announcement by the US Commerce Department's Bureau of Industry and Security, which claimed that using Huawei's Ascend chips anywhere in the world violates US export controls and it warned the public about the potential consequences of allowing US artificial intelligence chips to be used to train Chinese AI models, Chinese Foreign Ministry spokesperson Lin Jian said on Friday that the US overstretches the concept of national security, abuses export control measures and long-arm jurisdiction and imposes malicious restrictions and crackdown on Chinese chip products and AI industry based on unfounded accusations.

The US move seriously undermines market rules, disrupts the stability of the global industrial and supply chains, and gravely undermines the legitimate rights and interests of Chinese companies, Lin said. 

China strongly opposes and absolutely won't accept such actions and we urge the US to immediately correct its wrongful practice, stop the reckless suppression of Chinese tech companies and the AI industry, Lin said. China will take resolute measures to safeguard the legitimate rights and interests of Chinese enterprises, Lin said. - By Global Times

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Global ambitions: A man using his mobile phone in front of a billboard in Beijing, China. Huawei says that the first lineup of its PCs has built-in AI features, including DeepSeek-powered apps. — Bloomberg

IN the latest sign that US attempts to choke Huawei Technologies Co are only strengthening it, the Chinese tech giant will next week release its first line of personal computers (PCs) powered by the homegrown HarmonyOS operating system (OS).

The move to challenge the global duopoly overseen by Microsoft Corp’s Windows and Apple Inc’s MacOS was not by choice.

Huawei’s licence to run Windows on PCs expired in March, and America’s blacklisting makes it difficult for US firms to continue to do business with it.

Instead of succumbing to Washington’s squeeze, Huawei has invested heavily in the nearly impossible task of creating an entirely new software ecosystem from scratch.

It will be an uphill battle for HarmonyOS to make a dent, both in China and globally.

The first computers run by Windows or MacOS were released in the 80s and are the foundation – and essentially only options – for most applications and services that PC users rely on.

The diffusion and adoption of a new operating system doesn’t happen overnight.

But if Huawei can succeed in getting developers on board, it has a shot at providing the first real alternative to this two-party standard and offering a Chinese alternative that could eventually erode the long-term influence of Silicon Valley.

The new PCs follow the remarkable gains made by Huawei’s OS for mobile over the past couple of years, unseating Apple’s iOS in domestic market share at a rapid clip.

In early 2023, HarmonyOS’s operating system had just 8% of the mobile market in China, compared to the 72% held by Alphabet Inc’s Google-backed Android and iOS’s 20%, according to Counterpoint Research.

In the last quarter of 2024, however, HarmonyOS commanded 19% – surpassing iOS’s 17% and pushing Android’s share down to 64%.

There are other elements on its side.

Huawei’s homegrown OS aligns with President Xi Jinping’s goal of tech self-sufficiency, meaning it can likely count on government support to boost adoption.

China has a vast domestic market, which means there’s less pressure on Huawei to rely on the United States or foreign consumers as it works out any kinks.

The trade war is pressuring many Chinese to back domestic brands over American alternatives.

Huawei’s hardware empire also gives it a built-in userbase to tap. The company’s strength still largely lies in mobile devices, but it was second only to Lenovo in PC market share in China last year.

Still, headaches were reported with the mobile version, especially related to accessing certain apps that were specifically built for Android or iOS.

Splashy demo videos make the first such PC look like a sleek MacBook, but it’s going to take years for programmers to build out all the applications and products users have grown accustomed to, from Microsoft’s Office suite to Mac’s FaceTime.

By far the biggest challenge, across all devices, remains convincing developers to get on board.

China’s vast pool of engineers gives it an advantage, but Huawei must aggressively incentivise them to build services specifically for HarmonyOS.

It has made some strides. Huawei says that the first lineup of these PCs has built-in artificial intelligence (AI) features, including DeepSeek-powered apps.

State-backed media has reported that they have more than 150 dedicated applications, as well as being compatible with a range of popular Chinese platforms available on mobile.

In its annual report last year, Huawei said that over a billion devices – including phones, tablets and smartwatches – are already running HarmonyOS.

And Huawei has previously signalled global ambitions for its operating system, coinciding with its devices’ increasing popularity across South-East Asia and emerging markets.

A lot of attention has been paid to Huawei’s rise in the hardware sector, and specifically its advances in chipmaking for AI applications.

US efforts to ban advanced semiconductors from China have no doubt slowed AI ambitions. But they have also accelerated Beijing’s development of a domestic and self-sufficient ecosystem.

Most recently, America’s bar on Nvidia Corp’s H20 chips has been criticised for redirecting demand and money toward Huawei’s alternatives. The proliferation of Huawei’s HarmonyOS now makes it clear that we’re seeing a similar scenario play out in China’s software sector.

Washington should assess how its policies have resulted in Huawei growing into the behemoth it is today.

The ramifications extend far beyond potential impacts to US businesses.

In an increasingly bifurcating tech world, Beijing could eventually end up setting the norms and standards that the rest of the world adopts, whether that’s in AI or operating systems. — Bloomberg

Catherine Thorbecke is a Bloomberg Opinion columnist covering Asia tech. The views expressed here are the writer’s own.

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Trade war on pause: U.S. and China agree to temporary tariff cuts, Trade Meeting results in Geneva

U.S.-China trade war tensions ease as both countries agree to a 90-day tariff reduction deal. President Trump hails the move as a major breakthrough, slashing U.S. tariffs on Chinese imports from 145% to 30%, while China cuts duties from 125% to 10%. The temporary trade truce sparks market optimism but leaves uncertainty over a long-term agreement.

   

The temporary 90-day truce in the US-China trade war comes into effect today, with both sides drastically cutting sky-high tariffs. The trade dispute between the world's two largest economies saw levies for both sides at well over 100 percent. That hammered global markets, with billions of dollars wiped off equities, as well as hitting global supply chains. In joint talks in Geneva at the weekend,d the US agreed to lower tariffs on Chinese goods to 30 percent. China, meanwhile, agreed to cut its own levies on US goods to 10 percent.

  

Full text: Joint Statement on China-US Economic and Trade Meeting in Geneva

China and the United States on Monday released a joint statement on China-U.S. Economic and Trade Meeting in Geneva.

By Xinhua | 2025/5/12 15:02:22

China and the United States on Monday released a joint statement on China-U.S. Economic and Trade Meeting in Geneva.

The following is the English translation of the full text of the joint statement:

Joint Statement on China-U.S. Economic and Trade Meeting in Geneva

The Government of the People's Republic of China ("China") and the Government of the United States of America (the "United States"),

Recognizing the importance of their bilateral economic and trade relationship to both countries and the global economy;

Recognizing the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship;

Reflecting on their recent discussions and believing that continued discussions have the potential to address the concerns of each side in their economic and trade relationship; and

Moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect;

The Parties commit to take the following actions by May 14, 2025:

The United States will (i) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 percent on those articles pursuant to the terms of said Order; and (ii) removing the modified additional ad valorem rates of duty on those articles imposed by Executive Order 14259 of April 8, 2025 and Executive Order 14266 of April 9, 2025.

China will (i) modify accordingly the application of the additional ad valorem rate of duty on articles of the United States set forth in Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining additional ad valorem rate of 10 percent on those articles, and removing the modified additional ad valorem rates of duty on those articles imposed by Announcement of the Customs Tariff Commission of the State Council No. 5 of 2025 and Announcement of the Customs Tariff Commission of the State Council No. 6 of 2025; and (ii) adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.

After taking the aforementioned actions, the Parties will establish a mechanism to continue discussions about economic and trade relations. The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the U.S. side will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative. These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues.

Reluctant player: China's approach to international economic ins

titutions ...

Brookings

https://www.brookings.edu › articles › reluctant-player-...

14 Sept 2020 — Much of the American concern with China's role in the global economy is related to the partial integration of the country into the global ...

China has been an active participant in the international economic institutions, namely the World Trade Organization (WTO), the International Monetary Fund (IMF), the World Bank, and the Paris climate agreement. China has generally lived up to its commitments in these institutions, but has been reluctant to take on the stronger responsibilities that fall on developed countries. China’s insistence on being treated as a developing country is a main source of tension in its economic relations with the advanced economies. A further area of tension is that China’s bilateral economic relations with other developing countries do not always meet global standards and norms. From an institutional point of view, it is a problem that China is not a member of the Government Procurement Arrangement within the WTO, the Paris Club of official creditors, or the Development Assistance Committee. There is a chicken-and-egg problem here: the main reason China is not a member is that it has not been willing to take on the associated responsibilities; on the other hand, being outside of these institutions leaves China free to behave differently from the advanced economies.

Much of the American concern with China’s role in the global economy is related to this partial integration of the country into the global economic institutions. I argue that to change China’s behavior and bring its practices into line with advanced country norms would require: (1) recognition that China deserves greater say in the international economic institutions in return for greater responsibility; (2) a willingness to pursue deeper agreements such as the Trans-Pacific Partnership (TPP) without China if it is not willing to meet the associated standards; and (3) ongoing, intensive dialogue between China and the U.S. aimed at objectionable Chinese practices such as restrictions on imports and investment, weak intellectual property rights (IPR) protection, forced technology transfer, and subsidies to develop specific technologies.

China has been an active participant in international economic institutions…

In the case of the WTO, China has become a very active member since joining in 2001. Between 2006 and 2015, 44 cases — representing more than a quarter of the WTO caseload — involved China as a complainant or as a respondent.1 Only the United States and the European Union had more active cases over the period. Furthermore, in general, when China has lost cases it has changed the necessary laws and regulations and complied with the ruling, though not always as expeditiously as complainants had hoped. Based on this, one could conclude that China’s integration into trade dispute settlement has been relatively successful.

However, China presents a number of unique challenges for the trading regime. Since the Great Recession, WTO litigation has increasingly taken on a dynamic of the U.S., the EU, and Japan versus China. Between 2009 and 2015, China-related cases accounted for 90% of the cases brought by the four big economies vis-à-vis each other. It used to be that cases between the United States, EU, and Japan were common; now, increasingly, they join together against China.2

The problems arise from the dualistic nature of the Chinese economy. While the economy is often characterized as state-dominated, private enterprises are at the heart of China’s dynamic growth. Traditionally, most exports have come from foreign-invested firms. Recently most of the value added in China’s exports has come from the domestic private sector as value chains have lengthened in China. State enterprises dominate in fields such as heavy industry and especially services — finance, telecom, and logistics. These characteristics make it difficult to determine certain legal issues under WTO rules — such as whether a firm is associated with the state, or how to characterize the overall form of China’s economy. These elements also pose issues for certain activities that fall outside the scope of the WTO’s present disciplines. It is difficult, for example, for the WTO to deal with investment restrictions, forced technology transfer, and intellectual property (IP) theft.

China’s relationship with the IMF has changed remarkably in recent years. In the mid-2000s, China allowed its currency to become undervalued and its current account surplus to balloon above 10% of gross domestic product. The U.S. Department of the Treasury put pressure on the IMF to highlight the issue of global imbalances and currency misalignment. There were several years in the mid-2000s in which the IMF team was not welcome in Beijing to carry out their annual Article IV review of macroeconomic policies. China had very large trade surpluses and an undervalued currency for only four years from 2005 to 2008, after which the authorities allowed the yuan to appreciate and made other policy changes that eliminated the large surpluses.3 This is a good example of China adapting to global norms.

Since that time, the China-IMF relationship has evolved into a close partnership. As attention shifted away from the exchange rate, starting around 2009, the IMF focused its China program more on financial supervision with a series of welcome technical interventions and policy advice.4 Quota reform in the IMF, pushed by the United States, shifted shares toward emerging markets, especially China, primarily at the expense of Europe. While China has gained quota share in the IMF, its share still lags far behind its weight in the world economy. In addition to its quota, China also supports IMF programs for other countries by lending money in parallel through various arrangements that the IMF has adopted to augment its resources.