BTC fall! The China-US chip war escalates again, with China angrily criticizing the Trump administration for abusing export controls.

The trade dispute between the U.S. and China surrounding technological hegemony has escalated once again. Following U.S. President Trump’s accusations of China violating the preliminary trade agreement, the Chinese government retaliated, strongly condemning the U.S. for its "discriminatory export restrictions" in the semiconductor sector. The competition between the two sides in AI and high-tech infrastructure is rapidly evolving into a high-tech cold war.

Bitcoin has declined over 2% in the past day, falling along with the investment market.

China: The U.S. 'abuse' of export controls harms the global supply chain.

Liu Pengyu, spokesman for the Chinese Embassy in the United States, stated to NBC News that China has repeatedly expressed concerns over the U.S. abuse of control measures on semiconductor exports. He pointed out: "Recently, China has made serious representations to the U.S. regarding the abuse of export control measures in the semiconductor field and related actions."

These remarks were made after Trump accused China of violating the trade protocol on social media. Trump claimed that Beijing had not fulfilled its commitments under the bilateral preliminary trade agreement. U.S. Trade Representative Jamieson Greer also stated in an interview: "China is deliberately delaying the implementation of the agreement's content."

Geneva reached a 90-day ceasefire protocol, China demands the United States to fulfill its commitments.

After the Geneva talks on May 12, both China and the United States agreed to suspend new tariffs for 90 days in an effort to ease tensions. However, this temporary truce seems unable to prevent the escalation of contradictions.

"China once again urges the United States to immediately correct its erroneous practices, stop discriminatory restrictions against China, and jointly uphold the consensus reached during the Geneva high-level talks," Liu Pengyu added.

Huawei suffers! The US enacts AI chip ban infuriating Beijing

China's protests also echo the recent severe sanctions imposed by the United States on Huawei. The U.S. not only prohibits domestic companies from importing Huawei AI chips but also does not allow companies to use these chips in their own products. The Chinese side believes that this practice not only strikes at Chinese enterprises but also distorts the fair competitive environment of the global technology market.

This series of measures is part of the U.S. defense strategy, which began targeting China with technology blockades during Trump's administration. In 2019, the Trump administration severed Huawei's access to U.S. technology, causing Huawei's mobile phone business to come to a standstill until the company developed its own chips that do not rely on U.S. technology.

Nvidia warns: Blocking will only force China to build its own ecosystem

The United States' actions to impose export controls on Chinese chips not only impact China but also result in significant losses for American technology companies. AI chip leader Nvidia has recently been vocal in opposing the government's export restriction policies.

Nvidia was notified earlier this year that it is prohibited from exporting its H20 chips, which were designed for the 2022 export regulations, to China. The company stated that this restriction could result in a loss of up to $8 billion in sales this quarter. Additionally, due to the inability to resell, Nvidia has accumulated $4.5 billion worth of inventory chips.

Nvidia CEO Jensen Huang stated during the earnings call: "The assumption of U.S. policy that China cannot produce AI chips is questionable to begin with, and it is clearly wrong now."

Software vendors are also affected, the US Department of Commerce has issued a letter limiting sales.

In addition to hardware chips, the U.S. government is also putting pressure on software design suppliers. Chip design software companies such as Synopsys and Cadence Design Systems recently received letters from the U.S. Department of Commerce, requesting them to cease the sale of software products to China. This series of restrictions is gradually cutting off China's reliance on key technologies in AI development, while the U.S. is attempting to seize the technological high ground.

AI export regulations may be rewritten as Trump retracts Biden's restrictions.

It is worth noting that Trump recently revoked the "AI diffusion rule" issued by the Biden administration. This rule was originally intended to limit the export of AI chips to most countries. It is understood that the Trump administration is planning to issue a more streamlined export rule, which is expected to be released within a few months.

The competition for technological hegemony has not yet reached its end.

The conflict between China and the United States over semiconductor and AI technologies is no longer just a trade issue, but a war that concerns national security and global industrial dominance. As both sides continue to escalate sanctions and countermeasures, this tech war not only impacts the companies of both nations but is also bound to have far-reaching effects on the global supply chain and innovation landscape.

This article discusses the BTC crash! The China-US chip war escalates, and China angrily criticizes the Trump administration for abusing export controls. First appeared in Chain News ABMedia.