The intense U.S.-China tech rivalry is fueling a new trade dispute, with Beijing accusing Washington of violating a recent tariff truce through new AI chip export controls and planned revocations of Chinese student visas. China argues these measures undermine the agreement to de-escalate trade tensions, showcasing how easily technological competition can ignite broader conflict.
The Chinese Commerce Ministry released a statement on Monday, asserting that the U.S. practices “seriously violate the consensus” reached to slash tariffs and restart stalled trade. This agreement, which provided a temporary pause to President Trump’s trade wars, appears unable to resolve the deeper strategic disagreements between Washington and Beijing, particularly in the critical area of advanced technology.
China maintains it has upheld its end of the deal by canceling or suspending its own retaliatory tariffs. However, Beijing accuses the U.S. of “unilaterally provok[ing] new economic and trade frictions,” thereby exacerbating uncertainty. The ministry’s threat of unspecified retaliation suggests that China is prepared to respond forcefully, potentially leading to a renewed escalation of trade hostilities.
