US halts tech exports to China and China slams as 'bullying,' vows response

United States to halt technology exports to China, particularly concerning advanced semiconductors, has elicited a strong response from Beijing. The U.S. has characterized these measures as necessary for national security, asserting that Chinese-made AI chips could potentially bolster military capabilities . However, China has vehemently criticized these actions as "bullying," claiming that they are aimed at suppressing its technological progress and harming the interests of Chinese enterprises . Such unilateral restrictions reflect a broader trend of protectionism that raises questions about international trade relations and cooperation in the tech industry.

Beijing try to flex their power over essential economic components in an attempt to gain the upper hand in an intensifying trade conflict.

A growing standoff over critical supply chains could have significant implications for companies that depend on foreign technologies, including makers of airplanes, robots, cars and semiconductors.

It could also complicate efforts to negotiate an end to a trade fight over the administration’s tariff policies. On May 12, negotiators from the two countries agreed to reduce the punishing tariffs they have imposed on each other for 90 days while negotiators sought a longer-term resolution.

China".

"These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," the commerce ministry said.

China's Ministry of Commerce condemned U.S. policies as unilateral bullying and threatened retaliation, underscoring the tense technological rivalry between the two powers. Analysts suggest export controls may spur China's domestic innovation. These developments raise concerns about global supply chains and future technological progress.The U.S. actions target key sectors, including semiconductors and artificial intelligence, aiming to slow China's technological advancement.

Beijing views these measures as a direct challenge to its economic sovereignty and its ambition to become a global leader in technology. The potential for escalating trade restrictions and counter-restrictions looms large, threatening to further fragment the global economy. Companies worldwide are now reassessing their reliance on Chinese supply chains and exploring diversification strategies to mitigate risks. The long-term implications of this technological cold war remain uncertain, but it is clear that the future of innovation will be shaped by the geopolitical dynamics between the U.S. and China.

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Sara H

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