US Warns Global Companies Against Using Huawei AI Chips, Escalating Tech Tensions with China

US warns companies around the world to stay away from Huawei chips

President Donald Trump's administration has taken a tougher stance on Chinese technology advances, warning companies around the world that using artificial intelligence chips made by Huawei could trigger criminal penalties for violating US export controls. The commerce department issued guidance to clarify that Huawei's Ascend processors were subject to export controls because they almost certainly contained, or were made with, US technology. Its Bureau of Industry and Security, which oversees export controls, said on Tuesday it was taking a more stringent approach to foreign AI chips, including "issuing guidance that using Huawei Ascend chips anywhere in the world violates US export controls." But people familiar with the matter stressed that the bureau had not issued a new rule, but was making it clear to companies that Huawei chips are likely to have violated a measure that requires hard-to-get licences to export US technology to the Chinese company. "The guidance is not a new control, but rather a public confirmation of an interpretation that even the mere use anywhere by anyone of a Huawei-designed advanced computing [integrated circuit] would violate export control rules," said Kevin Wolf, a veteran export control lawyer at Akin Gump. The bureau said three Huawei Ascend chips -- the 910B, 910C and 910D -- were subject to the regulations, noting that such chips are likely to have been "designed with certain US software or technology or produced with semiconductor manufacturing equipment that is the direct produce of certain US-origin software or technology, or both." The guidance comes as the US has become increasingly concerned at the speed at which Huawei has developed advanced chips and other AI hardware. Huawei has begun delivering AI chip "clusters" to clients in China that it claims outperform the leading US AI chipmaker Nvidia's comparable product, on key metrics such as total compute and memory. The system relies on a large number of 910C chips, which individually fall short of Nvidia's most advanced offering, but collectively deliver superior performance to a rival Nvidia cluster product. The Shenzhen-based conglomerate currently offers its Ascend series processors, mainly the 910B and 910C, to Chinese companies. Huawei is boosting production capacity by building its own advanced semiconductor production lines, as Chinese companies cut off from Nvidia's products are increasing orders. There is growing US concern that China's national champion will soon be selling AI processors in both China and foreign markets that can compete with Nvidia and other US companies' products. Nvidia chief Jensen Huang said last month Huawei was "one of the most formidable technology companies in the world" and US policies should help his company compete on the global stage. Nvidia declined to comment on the bureau's new rules. Huawei did not immediately respond to a request for comment. The commerce department also rescinded the AI Diffusion Rule on Tuesday, a measure the previous Biden administration had planned would take effect on May 15. It was designed to limit exports of AI chips to other countries and make it harder for China to circumvent existing US export controls. But the department said the rule was too bureaucratic -- a view former Biden officials reject -- and it would issue a replacement in the future. The announcement came on the day Trump visited Saudi Arabia, where he unveiled a raft of deals, including a commitment by the kingdom's new state-owned AI company, Humain, to build AI infrastructure using hundreds of thousands of Nvidia chips. A source familiar with the situation said the scale of the proposed Gulf deals shocked many senior Trump administration officials. They were concerned about offshoring large-scale AI infrastructure, and also turning a blind eye towards Saudi and the United Arab Emirates' collaborations with Beijing. Additional reporting by Michael Acton in San Francisco. © 2025 The Financial Times Ltd. All rights reserved Not to be redistributed, copied, or modified in any way.

US Warns That Using Huawei AI Chip 'Anywhere' Breaks Its Rules

The Commerce Department issued guidance stating that the use of Huawei Technologies Co.'s Ascend artificial intelligence chips "anywhere in the world" violates the government's export controls, escalating US efforts to curb technological advances in China. The agency's Bureau of Industry and Security is also planning to warn the public about "the potential consequences of allowing US AI chips to be used for training and inference of Chinese AI models." The guidance is designed to strengthen export controls on the hardware, the agency said in a statement Tuesday.

China Accuses US of 'Unilateral Bullying' on Huawei AI Chips

Beijing has pushed back against a US decision aimed at curbing Chinese-made artificial intelligence chips, a first sign of discord between the world's two largest economies since they agreed to a trade truce last weekend. In a reminder of the tensions that continue to exist between the Trump administration and China when it comes to technology, the Commerce Department said earlier this week it would issue guidance to make clear that using Huawei Technologies Co.'s Ascend AI chips "anywhere in the world violates US export controls."

US warns against using Huawei chips 'anywhere in the world'

President Donald Trump's administration has taken a tougher stance on Chinese technology advances, warning companies around the world that using artificial intelligence chips made by Huawei could trigger criminal penalties for violating US export controls. The commerce department issued guidance to clarify that Huawei's Ascend processors were subject to export controls because they almost certainly contained, or were made with, US technology. Its Bureau of Industry and Security, which oversees export controls, said on Tuesday it was announcing strengthened rules for foreign AI chips, including "issuing guidance that using Huawei Ascend chips anywhere in the world violates US export controls". People familiar with the matter stressed that the bureau had not issued a new rule, but was making it clear to companies that Huawei chips are likely to have violated a measure that requires hard-to-get licences to export US technology to the Chinese company. "The guidance is not a new control, but rather a public confirmation of an interpretation that even the mere use anywhere by anyone of a Huawei-designed advanced computing [integrated circuit] would violate export control rules," said Kevin Wolf, a veteran export control lawyer at Akin Gump. The bureau said three Huawei Ascend chips -- the 910B, 910C and 910D -- were subject to the regulations, noting that such chips are likely to have been "designed with certain US software or technology or produced with semiconductor manufacturing equipment that is the direct produce of certain US-origin software or technology, or both". The guidance comes as the US has becoming increasingly concerned at the speed at which Huawei has developed advanced chips and other AI hardware. Huawei has begun delivering AI chip "clusters" to clients in China that it claims outperform the leading US AI chipmaker Nvidia's comparable product, on key metrics such as total compute and memory. The system relies on a large number of 910C chips, which individually fall short of Nvidia's most advanced offering, but collectively deliver superior performance to a rival Nvidia cluster product. The Shenzhen-based conglomerate currently offers its Ascend series processors, mainly the 910B and 910C, to Chinese companies. Huawei is boosting production capacity by building its own advanced semiconductor production lines, as Chinese companies cut off from Nvidia's products are increasing orders. There is growing US concern that China's national champion will soon be selling AI processors in both China and foreign markets that can compete with Nvidia and other US companies' products. Nvidia chief Jensen Huang said last month Huawei was "one of the most formidable technology companies in the world" and US policies should help his company compete on the global stage. Nvidia declined to comment on the bureau's new rules. Huawei did not immediately respond to a request for comment. The commerce department also rescinded the AI Diffusion Rule on Tuesday, a measure the previous Biden administration had planned would take effect on May 15. It was designed to limit exports of AI chips to other countries and make it harder for China to circumvent existing US export controls. But the department said the rule was too bureaucratic -- a view former Biden officials reject -- and it would issue a replacement in the future. The announcement came on the day Trump visited Saudi Arabia, where he unveiled a raft of deals, including a commitment by the kingdom's new state-owned AI company, Humain, to build AI infrastructure using hundreds of thousands of Nvidia chips. A source familiar with the situation said the scale of the proposed Gulf deals shocked many senior Trump administration officials. They were concerned about offshoring large-scale AI infrastructure, and also turning a blind eye towards Saudi and the United Arab Emirates' collaborations with Beijing.

China accuses US of 'abusing' export control measures in Huawei AI chip curb

BEIJING, May 15 (Reuters) - China on Thursday accused the United States of "abusing export control measures" and urged Washington to correct its practices after the U.S. issued guidance warning companies not to use Huawei's Ascend AI chips. The guidance threatens the stability of global semiconductor supply chains, Chinese commerce ministry spokesperson He Yongqian told a regular press conference, adding that China will take steps to defend Chinese enterprise's legitimate rights and interests. On Tuesday, the U.S. Commerce Department's Bureau of Industry and Security published guidance warning that companies risked violating U.S. export controls by using Huawei's Ascend AI chips, the Shenzhen-based tech company's most advanced semiconductor series. Huawei's AI chips compete with those of U.S. giant Nvidia for Chinese market share. Reporting by Joe Cash and Beijing Newsroom; Editing by Aidan Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Media & Telecom

China accuses US of 'abusing' export control measures in Huawei AI chip curb

BEIJING (Reuters) -China on Thursday accused the United States of "abusing export control measures" and urged Washington to correct its practices after the U.S. issued guidance warning companies not to use Huawei's Ascend AI chips. The guidance threatens the stability of global semiconductor supply chains, Chinese commerce ministry spokesperson He Yongqian told a regular press conference, adding that China will take steps to defend Chinese enterprise's legitimate rights and interests. On Tuesday, the U.S. Commerce Department's Bureau of Industry and Security published guidance warning that companies risked violating U.S. export controls by using Huawei's Ascend AI chips, the Shenzhen-based tech company's most advanced semiconductor series. Huawei's AI chips compete with those of U.S. giant Nvidia for Chinese market share. (Reporting by Joe Cash and Beijing Newsroom; Editing by Aidan Lewis)