China Pushes Back: US Chip Export Control Tweaks Still “Discriminatory,” Demands End to Measures

The ongoing tech saga between the US and China just got another chapter, with China responding to recent adjustments in the US stance on chip export controls.

So, what’s the latest development in this critical global issue?

The US Department of Commerce’s Subtle Shift on AI Chip Guidance

You might recall a press release from the US Department of Commerce (Meiguo Shangwu Bu 美国商务部) dated May 12.

Initially, it stated that “using Huawei Ascend (HuaWei Shengteng 华为昇腾) chips anywhere in the world violates US export control regulations.”

That’s a pretty strong line in the sand.

However, they’ve now tweaked that language.

The updated guidance serves as a “warning [to] the industry of the risks of using advanced Chinese computer chips, including specific Huawei Ascend (HuaWei Shengteng 华为昇腾) chips.”

It’s a nuanced change, but one that hasn’t gone unnoticed.

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China’s Response: “Not Good Enough,” Core Issues Remain

China’s Ministry of Commerce (Shangwu Bu 商务部) isn’t exactly celebrating this revision.

Even before this specific wording adjustment, during a regular press briefing on May 15, China had already laid out its solemn position on these matters.

Beijing has reportedly been engaging in multiple levels of negotiation and communication with the US.

These discussions have occurred through the China-U.S. Economic and Trade Consultation Mechanism (ZhongMei JingMao CuoShang JiZhi 中美经贸磋商机制).

What’s China’s main beef?

They argue that the US action severely undermines the consensus reached at the Geneva High-Level Talks (RiNeiWa GaoCeng HuiTan 日内瓦高层会谈) between the two nations.

Consequently, China is demanding that the US “correct its wrongdoings.”

While China has “noticed that the US recently adjusted the relevant statements” in its guidance, their bottom line is stark:

“the discriminatory measures and market-distorting nature of the guidance itself have not changed.”

Why China Sees Red: Allegations of “Unilateral Bullying” and Market Distortion

• Abusing export control measures
• Intensifying restrictions on Chinese chips under “fabricated pretexts”
• Interfering with Chinese companies’ use of domestic chips
• Labeling US actions as “typical unilateral bullying”

Beijing isn’t holding back in its assessment.

From their perspective, the US is:

• Abusing export control measures.
• Intensifying restrictions on Chinese chip products under what China calls “fabricated pretexts.”
• Even interfering with Chinese companies’ use of China’s domestically produced chips within China.

China’s spokesperson stated the US has “overstretched its reach.”

They label this as “typical unilateral bullying,” a practice China “firmly opposes.”

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The Broader Impact: More Than Just a Bilateral Spat, Global Supply Chains Threatened

China contends these US actions have far-reaching negative consequences beyond their bilateral relationship.

They assert these measures:

• Seriously harm the legitimate rights and interests of Chinese enterprises.
• Severely threaten the safety and stability of the global semiconductor (BanDaoTi 半导体) production and supply chain.
• Severely impact global scientific and technological innovation.

There’s a pointed message here: “Tripping others will not make oneself run faster.”

China believes such unilateral protectionist tactics aimed at containing other countries will ultimately damage the US’s own industrial competitiveness.

The result, they predict, “can only be self-defeating.”

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China’s Call to Action: Correct Erroneous Actions and Strengthen Communication

• Immediately correct erroneous actions and stop discriminatory measures
• Jointly uphold consensus from Geneva High-Level Talks
• Strengthen communication through mechanisms like the China-U.S. Economic and Trade Consultation Mechanism
• Effectively manage differences and resolve concerns through consultation
• Warning: Resolute countermeasures will be taken if China’s interests are harmed

So, what’s China’s ask?

First and foremost, they urge the US to “immediately correct its erroneous actions.”

This includes stopping its “discriminatory measures against China.”

Looking forward, China calls for both sides to:

• Jointly uphold the consensus of the Geneva High-Level Talks (RiNeiWa GaoCeng HuiTan 日内瓦高层会谈).
• Strengthen communication of positions through mechanisms like the China-U.S. Economic and Trade Consultation Mechanism (ZhongMei JingMao CuoShang JiZhi 中美经贸磋商机制).
• Effectively manage differences.
• Resolve respective concerns through consultation.

The stated aim is noble: to promote the building of a “sustainable, long-term, and mutually beneficial bilateral economic and trade relationship.”

However, a clear warning accompanies this call for dialogue.

If the US “persists and continues to substantially harm China’s interests,” China will “take resolute measures to safeguard its legitimate rights and interests.”

This ongoing friction over chip export controls underscores the deep complexities and high stakes in the critical US-China tech and trade landscape.

References

• Ministry of Commerce Homepage – Ministry of Commerce (Shangwu Bu 商务部)
• US-China Tech War – Reuters
• Technology News – Bloomberg