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China says U.S. moves on computer chips and student visas ’seriously violate’ tariffs truce

China says U.S. moves on computer chips and student visas ’seriously violate’ tariffs truce

The Hindu
Tuesday, June 03, 2025 04:20:58 AM UTC

China criticised the U.S. on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines.

China criticised the U.S. on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas.

“These practices seriously violate the consensus,” the Commerce Ministry said in a statement, referring to a China-U.S. joint statement in which the United States and China agreed to slash their massive recent tariffs, restarting stalled trade between the world’s two biggest economies.

But last month's de-escalation in President Donald Trump’s trade wars did nothing to resolve underlying differences between Beijing and Washington and Monday's statement showed how easily such agreements can lead to further turbulence.

The deal lasts 90 days, creating time for U.S. and Chinese negotiators to reach a more substantive agreement. But the pause also leaves tariffs higher than before Trump started ramping them up last month. And businesses and investors must contend with uncertainty about whether the truce will last.

U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop the 145% tax Trump imposed last month to 30%. China agreed to lower its tariff rate on U.S. goods to 10% from 125%.

The Commerce Ministry said China held up its end of the deal, cancelling or suspending tariffs and non-tariff measures taken against the U.S. “reciprocal tariffs” following the agreement.

"The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations,” while China has stood by its commitments, the statement said.

Read full story on The Hindu
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