China threatens legal action against US over Huawei chip ban
What's the story
China's Ministry of Commerce has threatened to take legal action against the US. This warning comes in response to America's guidelines prohibiting the use of certain Chinese chips, including those from tech giant Huawei. The ministry has labeled these measures as "unilateral bullying and protectionism," asserting that they violate international laws and principles of global relations.
Legal implications
China's anti-sanctions law could be invoked
The ministry has warned that organizations or individuals enforcing or assisting in implementing these measures, would face legal consequences under China's anti-sanctions law. Enacted in 2021, this law stipulates that anyone implementing or aiding sanctions against China is subject to prosecution and liable for compensation for losses incurred. The ministry has pledged to closely monitor US actions and take decisive steps to protect its interests.
Chip restrictions
US guidelines restrict use of Chinese chips
Last week, the US Bureau of Industry and Security issued guidelines that globally prohibit the use of certain Chinese chips, even within China. The guidelines also limit the use of American chips for training Chinese artificial intelligence models. These actions by Washington have been criticized by Beijing as detrimental to China's legitimate rights and interests, and harmful to China's development interests.
Goods
Huawei's Ascend AI chip series under scanner
The US has said that use of Chinese chips, specifically the Huawei Ascend series, violates its export controls. Three chips, namely the Ascend 910B, 910C and 910D were singled out in the guidelines, but the BIS said the list was not exhaustive and would be updated if required. Huawei's ability to make chips that can take on NVIDIA's products has intensified Beijing's rivalry with Washington.