On May 10, 2025, U.S. and Chinese officials found themselves sitting down in Geneva, Switzerland. They focused on making sense of the new realities of their long-established and complicated trade relationship. The discussions involved key figures, including China’s International Trade Representative and Vice Minister of Commerce Li Chenggang, U.S. Trade Representative Jamieson Greer, and U.S. Secretary of the Treasury Scott Bessent. Although the purpose was to encourage collaboration, the conversation turned combative. Shortly after the U.S. announcement, China accused the United States of “backpedaling” on their preliminary trade agreement.
The fuse was not only lit, but the bomb exploded when the U.S. provided an industry wide warning that expressly called out Chinese chips. The alert similarly named Huawei as a repeat offender for violating U.S. export controls. Only two days ago, deep in the heart of the Trump administration’s imbroglio with China, the administration announced a huge “China trade deal.” This announcement came on the heels of grueling negotiations that took place in Geneva.
China’s leadership made their displeasure with this turn of events very clear. Chinese Vice Premier He Lifeng was clear on China’s stance, calling the U.S. guidance “discriminatory” and “market distorting.” In response to the U.S. actions, a spokesperson for China’s Ministry of Commerce demanded that the U.S. “immediately correct its wrong practices and stop discriminatory measures against China.”
These discussions occur with a temporary tariff moratorium in the background. That pause helped to thaw the tense trade war that had previously burdened U.S.-China relations. Washington and Beijing came to a mutual understanding that led to a 90-day ceasefire. In this bilateral deal, U.S. tariffs on Chinese goods were cut by 145% down to 30%. President Donald Trump issued the threat that he would re-impose or increase these tariffs. He warned that this move would only come if a larger trade deal is not concluded.
The U.S. Commerce Department’s Bureau of Industry and Security stated, “These chips were likely developed or produced in violation of U.S. export controls,” thereby raising concerns about the risks associated with using certain Chinese advanced-computing integrated circuits (ICs), including specific Huawei Ascend chips.
In light of these developments, China’s Ministry of Commerce has made it clear that if the U.S. continues to impose measures that harm China’s interests, they will respond with “resolute measures to safeguard its legitimate rights and interests.”
“China urges the U.S. to immediately correct its wrong practices and stop discriminatory measures against China,” – China’s Ministry of Commerce spokesperson
“If the U.S. insists on its own way and continues to substantially damage China’s interests, China will take resolute measures to safeguard its legitimate rights and interests,” – China’s Ministry of Commerce spokesperson