China urges U.S. to reverse chip warning, threatens firm response

China on Monday called on the United States to cancel new guidance warning companies against using advanced Chinese computer chips, including those made by Huawei, and said it would take firm action if its interests are harmed.

The U.S. Commerce Department last week issued a notice reminding businesses that using certain Chinese chips, such as Huawei’s Ascend AI chips, could violate export control rules.

In response, China’s Ministry of Commerce accused the U.S. of unfair treatment and said the move violated recent agreements made during high-level trade talks in Geneva.

“The U.S. has been abusing export control measures under unfounded accusations,” the ministry said in a statement. “China firmly opposes this.”

The ministry warned that if the U.S. continues to take actions that “substantially” harm China’s interests, Beijing will respond with “resolute measures.”

“Trying to trip others won’t make oneself run faster,” the ministry added, suggesting that the U.S. actions could also damage its own technology industry.

The warning comes shortly after China and the U.S. agreed to a 90-day pause on new tariffs during trade talks in Geneva. Both sides pledged to work toward easing high tariffs on each other’s goods as part of ongoing negotiations.

Chinese Vice Commerce Minister Li Chenggang and U.S. Trade Representative Jamieson Greer, who led the Geneva talks, also met last week at an Asia-Pacific Economic Cooperation meeting in South Korea.

The latest tensions raise concerns about the fragile progress made between the world’s two largest economies as they try to stabilize their trade relationship.