Tensions Between US and China Over Chips May Hurt Trade Truce - Bloomberg
Kyiv • UNN
China threatens legal action against Huawei trading partners who apply US chip restrictions. This exacerbates the technological dispute between the countries and calls into question the trade truce.
The technological confrontation between the US and China is intensifying again. The reason is Beijing's threats to prosecute trade partners who apply Washington's restrictions on Huawei Technologies Co. chips. This calls into question the recent trade truce between the countries and efforts to restore dialogue. Bloomberg writes about this, UNN reports.
Details
China's Ministry of Commerce said on Wednesday that organizations and companies inside the country will violate local law banning foreign sanctions by complying with US restrictions, threatening lawsuits. This step exacerbates the technological dispute between the countries, despite the fact that Chinese officials express a desire to improve relations.
The US Department of Commerce previously warned that the use of Huawei semiconductors "anywhere in the world" would violate US export controls. China said the Trump administration's chip actions undermined recent trade talks and agreements reached in Geneva.
Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai, said that the amendment provides for the continuation of contacts between the two parties, at least at the working level.
The challenge is how both sides can maintain the momentum gained at the Geneva talks. I hope that high-level bilateral negotiations will take place next month. But in the current situation, nothing can be guaranteed.
Deputy Foreign Minister Ma Zhaoxu told the new US Ambassador to China, David Perdue, that Beijing hopes the US will work together to develop ties.
Let us remind you
The USA and China agreed to temporarily reduce tariffs on each other's goods. This is done to ease trade tensions and allow time to resolve disputes.