• China’s U.S. Embassy spokesperson demands an end to U.S. export controls on semiconductors, calling them discriminatory.
  • The warning comes weeks after both nations agreed to a temporary tariff rollback in Geneva, now at risk of collapse.
  • Semiconductor supply chains face renewed uncertainty as tensions threaten to derail the fragile 90-day trade truce.

Escalating Tensions Over Tech Restrictions

China has publicly urged the U.S. to cease what it describes as discriminatory export controls targeting its semiconductor industry, warning that continued restrictions could prompt countermeasures. The statement from China’s U.S. Embassy spokesperson follows weeks of simmering tensions after both sides agreed in Geneva to reduce reciprocal tariffs to 10% for a 90-day period starting mid-May 2025.

Despite the temporary truce, U.S. export controls on advanced chips remain a sticking point, with China arguing they violate the spirit of the Geneva consensus. "The U.S. must stop its unilateral, discriminatory actions that distort markets and threaten global innovation," the spokesperson said, without specifying potential retaliatory steps.

Market and Diplomatic Fallout

The dispute has injected fresh uncertainty into global semiconductor supply chains, with industry analysts warning of potential disruptions. The U.S. has justified its export controls on national security grounds, but China insists they are economically motivated.

Investors are closely watching whether the 90-day tariff reduction holds, given mutual accusations of deal violations. Former U.S. President Donald Trump recently accused China of failing to uphold its commitments, while Beijing claims Washington moved first by tightening chip restrictions after the Geneva talks.

What’s Next?

With the tariff rollback set to expire in mid-August 2025, the window for de-escalation is narrowing. Observers suggest China may delay retaliatory measures until after the deadline, but further U.S. restrictions could force its hand. The standoff underscores how quickly diplomatic progress can unravel in the volatile U.S.-China trade relationship.