China Hits Back At US Over Huawei Chip Warning, Demands Trump Administration ‘Correct Its Mistakes’

The Chinese government hit back at the U.S., saying that the Trump administration undermined the trade talks between the two countries after the Commerce Department warned against using Chinese-made chips, with Huawei mentioned in the guidance.

A ministry spokesperson demanded the administration “correct its mistakes” and warned that the Xi Jinping administration would take countermeasures if it did not.

“If the U.S. insists on its own way and continues to substantially damage China’s interests, China will take resolute measures to safeguard its legitimate rights and interests,” the spokesperson said, according to a machine-translated press readout.

This comes after President Donald Trump announced a trade deal with China following talks in Geneva, Switzerland.

As a result of this meeting, the U.S. and China announced a 90-day pause on most of the tariffs imposed on each other following President Trump’s ‘Liberation Day’ announcement.

Tariffs on Chinese goods imported into the U.S. were reduced to 30% post the meeting.

However, two days later, the U.S. Commerce Department’s Bureau of Industry and Security issued guidance that drew China’s ire.

The guidance highlighted the risks of using “PRC advanced-computing” chips, explicitly mentioning Huawei’s Ascend chips.

“These chips were likely developed or produced in violation of U.S. export controls,” the guidance stated.

The Chinese commerce ministry spokesperson said the U.S. is overreaching and said China opposes this “typical unilateral bullying behavior.”

“The U.S. abuses export control measures, tightens control over Chinese chip products on trumped-up charges, and even interferes with Chinese companies using chips produced in China,” the spokesperson added.

They also said that this move threatens the global semiconductor supply chain and damages the legitimate interests of Chinese companies.

Meanwhile, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, was up 0.18% at the time of writing.

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