China criticizes Trump for “abuse” the control of semiconductor exports

2025-05-31 14:04
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2025-05-31 14:04
China criticized the American control of the export of semiconductors in response to Trump's accusations that the second largest economy of the world violated a preliminary trade agreement between these two countries – writes CNBC.


“Recently, China has repeatedly expressed concerns in contacts with the United States regarding their abuse of export controls in the semiconductor sector and other related practices,” said the spokesman for China Embassy in the USA Liu Pengyu in an interview with NBC News.
The statement did not specify what actions the United States took. At the beginning of this month, China stated that the United States “abuse” export control after the US banned American importing companies and even the use of Huawei AI chips.
This is the latest escalation of the ongoing trade war between the US and China, especially when it comes to artificial intelligence and infrastructure needed to develop the most advanced technologies.
China's answer came after President Donald Trump said on Friday morning in social media that China violated the trade agreement. The USA commercial representative Jamieson Greer said in an interview with CNBC that “the Chinese are slowly implementing their rules.”
On May 12, USA and China agreed to a 90-day suspension of most tariffs imposed by each side. This agreement took place after the economic and commercial meeting between two countries in Geneva, Switzerland.
The United States limited the export of some integrated circuits and technologies of integrated circuits to China as part of the national defense strategy dating back to the time of the first Trump administration.
In 2019, President Trump cut off Huawei access to American technology, which forced him to withdraw from the smartphone industry for several years before he could develop his own integrated circuits without using American intellectual property or infrastructure. In 2022, the Biden administration took action for the first time to cut off China's access to the fastest AI systems produced by NVIDIA.
Recently, restrictions have become more stringent, and at the beginning of this week manufacturers of software for integrated circuits, including Synopsys and Cadence, informed that they received letters from the US Department of Trade Department ordering them to stop selling to China.
The NVIDIA company, producing the most advanced semiconductors for applications in artificial intelligence, openly opposed American export controls, claiming that they would force China only to develop their own ecosystem of integrated circuits instead of adapting to American standards.
Nvidia found out at the beginning of this year that she can no longer sell her H20 system to China, which will cause her to lose about $ 8 billion in the current quarter.
The H20 system was specially designed by Nvidia to meet the restrictions for 2022, but Trump's administration said in April that the company needs an export license.
Nvidia estimates that she had USD $ 4.5 billion in wrestling, which she could not reuse.
“The US has based their policy on the assumption that China is not able to produce AI chips. This assumption has always been doubtful, and now it is clearly wrong,” told investors Jensen Huang, CEO of Nvidia, during a teleconference on the company's financial results.
The Trump administration repealed the extensive principle of controlling the export of chip, implemented by the Biden administration, called the “principle of diffusion AI”, which would impose export limits to most countries. In the coming months, the introduction of a new, simpler rule is expected. (PAP Biznes)
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