China Threatens to Take Legal Action Against Anyone Complying With U.S. Ban on Huawei AI Chips
China has warned of the possible legal consequences for individuals or companies that comply with the new American restrictions discouraging the use of Huawei’s artificial intelligence tokens, marking a strong escalation in the rivalry of in -depth technology between Washington and Beijing.
On Wednesday, the Chinese Ministry of Commerce, in a strongly written statement, denounced American measures as discriminatory and politically motivated, accusing Washington of having abused the rules for the control of exports to repress Chinese companies.
“The United States abuse export controls to contain and suppress China, which violates international law and fundamental standards of international relations.
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These actions violate the principles of equitable competition and international economic and commercial rules, said the ministry, adding that any institution or individual who applies such discriminatory restrictions can face corresponding legal liabilities under Chinese law.
The warning comes a few days after the US trade department issued advice suggesting that companies using the ASCE AI fleas in Huawei – in particular in cloud computing and data centers – could be in violation of American export control regulations. Although it is not an outright ban, the opinion exerts additional pressure on companies to avoid Chinese semiconductors, intensifying the technological decoupling between the two largest economies in the world.
China adopted a significant rule in 2021 called the anti-drainage law of sanctions. Under these regulations, anyone imposing an unnecessary ban against China or Chinese companies will be subject to prosecution and will have to pay compensation for the losses suffered.
A fragile truce unleashed
The move risks to disentangle a provisional truce at the end of 2023 between the Biden and Beijing administration aimed at stabilizing trade relations after years of tariffs in Tit-For-Tat and the black list of technological companies. But with President Donald Trump who returns to the White House and reaffirming his doctrine “America First”, Washington has revitalized his campaign to stifle China access to advanced technology.
Trump has repeatedly accused China of taking advantage of American innovations for military and surveillance purposes. In his first mandate, he placed Huawei on the list of entities in the trade department, effectively cutting him from American suppliers. Now, with the breakthroughs of Huawei AI in sight, its administration extends these measures.
Beijing strikes back
The threat of China’s legal action marks the first time that it explicitly warned judicial consequences to follow American technological sanctions. Although it is not clear what form these responsibilities could take, analysts say that it sends a clear message that China is no longer content to issue diplomatic manifestations – it can now retaliate with national legal tools.
The Ministry of Commerce has called on the United States to “respect the legitimate development rights of businesses in all countries, including China”, and reiterated that technological progress should not be politicized or armed.
Innovation focused on Huawei sanctions: the good side of American restrictions
Huawei recent breakthroughs illustrate how American pressure inadvertently stimulated Chinese innovation. Formerly strongly dependent on American technology, the giant based in Shenzhen has spent the last four years reintriring its supply chains.
At the beginning of 2024, Huawei announced that it had managed to replace more than 13,000 pieces from American companies and redesigned 4,000 printed circuits. More recently, the company has taken an important step in the production of its Ascens 910C AI chips, double its production yield from 20% to 40% – a major jump in the self -sufficient semiconductor.
The chips, which fuel Huawei’s data and data centers, are increasingly symbols of the determination of China to compete in the global breed for the supremacy of artificial intelligence. This progress has alarmed American decision -makers, who consider advanced chips as vital strategic assets for national security.
Tech Cold War is deepened
China’s tone of reprisals indicates that the technological cold war between the two powers is entering a more aggressive phase. Legal threats could dissuade multinational companies from complying with American guidelines, in particular those operating or selling to the massive China market.
However, he also places global companies in a precarious position. “Companies are in a hurry on both sides – taken by the United States not to use Chinese technology and warned by China not to comply with American rules,” said Paul Triolo, Chinese technology expert in the Albright Stonebridge group.
The Biden administration had attempted to maintain the rivalry contained in strategic parameters, but Trump’s return has rekindled a posture of confrontation which risks fracturing global supply chains. With Huawei to prove to be resilient under sanctions, and China now openly threatening legal reprisals, the fight against IA chips quickly becomes a determining front in the broader geopolitical competition for technological domination.
