China Complains Of ‘Abuse’ Of Chip Controls After Trump Said It ‘Totally Violated’ Preliminary Trade Deal

China on Friday issued a rebuttal to President Donald Trump’s remarks about the Xi Jinping-led government violating a preliminary trade deal, as its embassy spokesperson accused the United States of abusing semiconductor chip controls.

“Recently, China has repeatedly raised concerns with the U.S. regarding its abuse of export control measures in the semiconductor sector and other related practices,” the spokesperson of the Chinese Embassy in the U.S., Liu Pengyu, told NBC News, according to a CNBC report.

Pengyu called on the U.S. to end its “discriminatory restrictions against China” and uphold the joint consensus reached in Geneva.

This comes after President Trump called China out in a post on his social media platform, Truth Social. He accused China of violating the Geneva trade agreement signed on May 12.

“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” he said.

While the Chinese embassy spokesperson’s statement did not specify an incident, it could be referring to a notification issued earlier this month by the U.S. Commerce Department’s Bureau of Industry and Security.

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.”

U.S. chip controls, aimed at limiting China’s access to high-end semiconductor technology, have frustrated Nvidia Corp. (NVDA) CEO Jensen Huang, too, who called the ban on H20 exports to China “deeply painful.”

He also said that the U.S. government’s attempts to slow down China’s innovation in artificial intelligence (AI) and semiconductors would eventually be unfruitful.

“Anybody who thought that one chess move to somehow ban China from H20s would somehow cut off their ability to do AI is deeply uninformed,” he added.

Meanwhile, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.27% at the time of writing.

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Also See: Jamie Dimon Warns Of The Enemy Within, Says He’s Not As Worried About China

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