In a further escalation of the tech war between China and the U.S., the U.S. Commerce Department's Bureau of Industry and Security claimed that the use of Huawei's Ascend chips risks violating U.S. export controls, and warned about the potential consequences of training Chinese artificial intelligence (AI) models with U.S. AI chips. The U.S. Commerce Department said the use of the chips “anywhere in the world” would breach U.S. export controls. This risks exposing users of Huawei Ascend chips to U.S. sanctions and splitting the tech world into those using Nvidia chips and others using Huawei's chips.
Chinese Foreign Ministry Spokesperson Lin Jian told a press conference that the U.S. overstretches the concept of national security, abuses export controls and long-arm jurisdiction, and groundlessly and maliciously blocks and suppresses China's chips and AI industry. The U.S. move seriously violates market rules, destabilizes the global industrial and supply chains, and undermines Chinese businesses' legitimate rights and interests, Lin said. “China firmly opposes this and absolutely does not accept it. China urges the U.S. to drop its protectionist acts and unilateral bullying, and stop its egregious suppression of China's tech businesses and the AI industry,” adding that China will take firm measures to ensure its right to development and Chinese businesses' legitimate rights and interests, Lin said.
The remarks by the Foreign Ministry Spokesperson followed criticism of the U.S. move by China's Ministry of Commerce (MOFCOM). Spokesperson He Yongqian said that the U.S. announcement is a typical non-market and unilateral bullying practice, which fully exposes the unilateralist and protectionist nature of the U.S. The U.S. has abused its export control measures and imposed stricter restrictions on Chinese chip products under unfounded allegations. The move has severely undermined Chinese companies' legitimate rights, threatened the stability of global semiconductor supply chains, violated market rules, and disrupted the international trade order, He said.
Ma Jihua, a veteran telecom industry analyst, told the Global Times that despite U.S. efforts to curb China's AI rise – most notably through export controls on high-end Nvidia chips – China's AI sector remains on a rapid growth trajectory. The resilience came from the country's solid industrial foundation and a shift toward self-reliance, which has accelerated breakthroughs in both software and hardware, Ma said. Microsoft Co-founder Bill Gates said in a recent interview that the U.S. tech bans on China have forced it to go full speed ahead in terms of chip manufacturing and other fields, suggesting that such bans have the opposite effect of their stated goals. Earlier this month, Nvidia's CEO Jensen Huang reiterated the importance of China's AI market following a visit to the country in mid-April, saying that China's AI market will likely reach about USD50 billion in the next two to three years, and that missing out on it would be a “tremendous loss”.
Despite U.S. crackdowns, the Chinese AI sector has maintained rapid growth. China is home to over 4,500 AI companies, with its core AI industries valued at nearly CNY600 billion. China’s foreign trade in chip products reached USD129.5 billion in the first quarter of 2025, up 5.5% year-on-year, while its exports amounted to USD40.99 billion, surging 10.9% year-on-year, the latest statistics from the General Administration of Customs (GAC) showed.
Meanwhile, Shenzhen has set up a dedicated semiconductor industry fund worth CNY5 billion, managed by the state-owned Shenzhen Capital Group. The Saimi – pronounced “semi” – fund draws its capital primarily from the Shenzhen municipal government and the Shenzhen Longgang District’s guidance funds. Shenzhen Capital Group and Shenzhen Major Industry Investment Capital, the latter under the Shenzhen Major Industry Investment Group, are both general partners in the fund. Officially registered in the city’s Longgang district on April 29, the initial contributed capital totaled CNY3.6 billion. Shenzhen’s Finance Bureau is the controlling shareholder, holding a 69.4% stake.
This overview is based on reports by the Global Times and the China Daily.
