China Accuses US of Breaching Trade Deal with Chip Restrictions and Visa Curbs

2025-06-02
China Accuses US of Breaching Trade Deal with Chip Restrictions and Visa Curbs
The Associated Press

Beijing, China – China has sharply condemned recent actions by the United States, alleging they represent a serious breach of the tariff truce reached between the two economic superpowers. The criticism centers on new U.S. regulations restricting the export of advanced artificial intelligence (AI) chips and halting the sale of certain chip design tools to Chinese companies. Simultaneously, China also expressed concern over stricter visa policies impacting Chinese students.

According to a statement released by the Chinese Ministry of Commerce on Monday, these U.S. measures go beyond what was agreed upon in the Phase One trade deal signed in 2020, which aimed to de-escalate tensions and address trade imbalances. The Ministry labeled the actions as “seriously violating” the spirit of the agreement and warned of potential retaliatory measures.

The U.S. restrictions on AI chips are primarily targeted at preventing China from acquiring technology that could be used to develop advanced military capabilities. The guidelines specifically limit the export of high-performance chips used in AI applications, impacting companies like Huawei and potentially hindering China’s advancements in areas like facial recognition and autonomous systems.

Furthermore, the decision to block the sale of chip design software, crucial for creating semiconductors, represents a significant blow to China’s domestic chip industry. This move aims to further curtail China’s ability to produce its own advanced chips, forcing reliance on foreign suppliers and potentially slowing down technological progress.

Adding to the tension, China also voiced concerns over increasingly stringent visa policies impacting Chinese students seeking to study in the U.S. While the specifics of these policies remain somewhat unclear, reports suggest heightened scrutiny and increased denial rates for Chinese student visa applications, particularly in sensitive fields like STEM (Science, Technology, Engineering, and Mathematics).

The Chinese government argues that these measures are discriminatory and undermine the principles of fair competition and open trade. They maintain that restricting access to technology and education is not only detrimental to China's economic development but also sets a negative precedent for global trade relations.

The situation raises concerns about a potential escalation of the trade war between the U.S. and China. While both sides have expressed a desire to maintain communication and avoid a full-blown conflict, these recent actions suggest a growing divergence in their economic and strategic interests. Analysts predict that China may respond with its own countermeasures, potentially targeting U.S. companies operating in China or imposing trade restrictions on American goods.

The long-term implications of these developments remain to be seen. However, it is clear that the relationship between the U.S. and China is entering a new and potentially more complex phase, characterized by heightened competition and increased uncertainty in the global economy.

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