By Tredu.com • 5/20/2025
Tredu
On Monday, China accused the United States of undermining their first trade agreement after the US Department of Commerce issued an industry advisory barring the use of Chinese-made chips for Huawei. According to a spokesperson for China's Ministry of Commerce, the recommendation from the US is "discriminatory" and "market-distorting," prompting Beijing to demand that the US administration "rectify its mistakes."
This move comes after China and the US had reached their first trade agreement aimed at easing tensions in trade relations between the world’s two largest economies. Chinese officials argue that the ban on Chinese chips, primarily targeting Huawei, is a form of trade pressure that negatively impacts competition and the global market.
China has opposed the action, claiming it represents an attempt by the US to use trade policy for political purposes, which contradicts the principles of free markets and fair competition. Beijing has urged the US to reconsider its decision and adopt a more balanced approach to trade relations.
This development could further complicate relations between the two nations, which are already in a challenging phase of trade negotiations.China Accuses US of Undermining Trade Agreement Over Huawei Chip Ban
On Monday, China accused the United States of undermining their first trade agreement after the US Department of Commerce issued an industry advisory barring the use of Chinese-made chips for Huawei. According to a spokesperson for China's Ministry of Commerce, the recommendation from the US is "discriminatory" and "market-distorting," prompting Beijing to demand that the US administration "rectify its mistakes."
This move comes after China and the US had reached their first trade agreement aimed at easing tensions in trade relations between the world’s two largest economies. Chinese officials argue that the ban on Chinese chips, primarily targeting Huawei, is a form of trade pressure that negatively impacts competition and the global market.
China has opposed the action, claiming it represents an attempt by the US to use trade policy for political purposes, which contradicts the principles of free markets and fair competition. Beijing has urged the US to reconsider its decision and adopt a more balanced approach to trade relations.
This development could further complicate relations between the two nations, which are already in a challenging phase of trade negotiations.
Unlock the secrets of professional trading with our comprehensive guide. Discover proven strategies, risk management techniques, and market insights that will help you navigate the financial markets confidently and successfully.