Photo by China just drew a legal line in the sand. On Wednesday, its Commerce Ministry announced that it may take legal action against any individual or company that follows the United States’ restrictions on Huawei’s chips, saying such enforcement violates Chinese law.
The warning didn’t come from some backroom committee, it was an official statement made public by the ministry, according to information provided in the original report.
The legal threat comes days after the US Commerce Department released a document saying that using Huawei’s semiconductors “anywhere in the world” could break US export rules. That language has now been revised.
The updated document, dated May 13, changes the wording to say that using Huawei Ascend chips “risks” violating US export controls. But Beijing isn’t buying the backpedal, and officials there say Trump’s administration has already damaged fragile talks between the two countries.
Beijing warns companies about following US orders
In its statement, the Commerce Ministry said that any person or group that helps carry out the US restrictions on Huawei Technologies Co. will be seen as violating China’s Anti-Foreign Sanctions Law.
The ministry didn’t explain what punishments violators would face but said they “must bear corresponding legal responsibilities.” That law, introduced in 2021, allows Beijing to retaliate against sanctions it views as unjust or politically motivated.
“China believes that the US abuses export controls to contain and suppress China, which violates international law and basic norms of international relations,” the ministry said. Officials claim that the Huawei chip ban hurts the country’s development and its tech companies.
Huawei’s Ascend chips are used in artificial intelligence systems, and the US ban isn’t just about blocking exports. It’s about stopping their use globally. That’s why the original language – “anywhere in the world” – set off alarms in Beijing.
Even though the US changed that part of the guidance later, China has made it clear it considers the message unchanged. This growing legal pressure lands right in the middle of what was supposed to be a thaw in US-China trade tensions.
Earlier this month, both sides held high-level meetings in Geneva, agreeing to a 90-day pause on some tariffs. But many trade barriers are still active. Now, the tech fight is threatening to collapse that temporary deal.
Talks continue despite mounting tech clash
Despite all the friction, both countries are still talking. On the same day as the lawsuit threat, Vice Foreign Minister Ma Zhaoxu met with David Perdue, the newly appointed US Ambassador to China, and said that China wants to rebuild ties.
That meeting followed another one just a day earlier, where People’s Bank of China Governor Pan Gongsheng sat down with Timothy Geithner, former US Treasury Secretary and now chairman of Warburg Pincus.
Foreign Minister Wang Yi also met with Kyung-wha Kang, CEO of the Asia Society, during which he said China and the US should focus first on cooperation in the Asia-Pacific region as a way to improve overall relations.
Still, tension is building behind the scenes. Wu Xinbo, who runs the Center for American Studies at Fudan University, said the latest shift in US guidance shows that “the two sides are still communicating, at least at the working level.” But he warned that “nothing’s guaranteed” when it comes to future high-level talks.
The US isn’t only pressuring China over tech. It’s also accusing Beijing of helping fuel fentanyl trafficking into the US, and demanding more cooperation on that front. At the same time, China is holding firm on its control of critical minerals, which are needed for everything from electric vehicles to defense systems.
China isn’t stopping with just threats. It’s also expanding its legal toolkit. In addition to the Anti-Foreign Sanctions Law, it has an Unreliable Entity List, which targets foreign companies that hurt Chinese interests.
And its Export Control Law allows it to block certain goods and technologies from being sold to foreign buyers. These rules are part of Beijing’s broader push to fight back against US pressure and protect its place in the global tech race.
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