In response to the US administration's latest moves to further restrict China's access to advanced technology, the authorities in Beijing have made no secret of their irritation and announced specific retaliatory measures.
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China's Ministry of Commerce has indicated that companies complying with US guidelines may soon find themselves targeted by Chinese law.
At the centre of the dispute again - as in previous clashes - are semiconductors, a key component of today's technologies ranging from artificial intelligence to armaments. New guidance from the US Department of Commerce warns domestic companies against using Chinese chips, threatening sanctions. Beijing views this as an attempt to globally block Chinese next-generation chips.
Technology as a battleground
Washington has consistently argued that limiting technological cooperation with China is a necessity driven by national security concerns. According to US authorities, US innovations - often unwittingly - support the modernisation of the Chinese military.
For Beijing, however, this is a blow aimed at one of the most important sectors of the country's economy and technological ambitions. Chinese officials have been particularly harsh in criticising the targeting of Huawei, a telecoms giant that has been aggressively developing the production of advanced chips and future technologies such as AI and quantum computers in recent years.
Beijing responds
In a special communiqué, China's Ministry of Commerce warned that any institution or individual supporting US restrictions could be held liable under Chinese law, including the Foreign Sanctions Countermeasures Law. This law, enacted in 2021, gives the government in Beijing the tools to punish foreign entities that China believes harm its economic or political interests.
Race to the chips
Although the US action is aimed at limiting the capabilities of Chinese companies, some, such as Huawei, have not only survived the earlier sanctions, but have also begun to make progress in domestic semiconductor production.
Huawei's Ascend chips under development, for example, have the potential to become an alternative to US technologies used by Chinese artificial intelligence companies.
Tensions on the horizon
‘Innovation, development and cooperation based on mutual benefit is a global trend’ - wrote a statement from China's Ministry of Commerce. - ‘China calls on the United States to stop misguided practices and respect the rules of international trade,’ the statement - It added.
For now, many Chinese tech start-ups may face barriers due to limited access to the latest chips. However, according to analysts, the US strategy can only delay, not stop, Chinese ambitions.
In the face of a ceasefire in wider trade negotiations - announced for 90 days in Geneva - technology is increasingly emerging as a bone of contention that neither side is willing to sacrifice. This game is no longer just about the economy, but about global leadership in the world of tomorrow.
