Tensions between the US and China have escalated over Huawei's AI chips, with China's Commerce Ministry threatening legal action against anyone enforcing US export restrictions. The US Commerce Department had issued guidelines reminding companies that using Huawei's Ascend AI chips anywhere in the world could violate US export rules. However, the department later revised the wording to remove the "anywhere in the world" phrase after China expressed concerns.
The US has been trying to limit China's access to advanced semiconductors, citing national security concerns. China views the US actions as extraterritorial and a direct challenge to its technological ambitions, particularly its "Made in China 2025" plans. Huawei's Ascend AI chips are seen as a significant development in China's semiconductor industry, with potential implications for the global tech landscape.
The tensions could affect global technology markets, trade relations, and countries caught in between, like Singapore. The US strategy may be aimed at containing China's technological advancement, but it could accelerate China's investment in domestic semiconductor development. The restrictions could disrupt global supply chains, affecting companies that rely on Huawei's AI chips or Chinese technology. The diplomatic relations between the US and China may also be strained, potentially affecting other areas of cooperation.
