China Slams U.S. Over Chip Curbs, Student Visas Amid Tariff Truce/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ China accused the U.S. of breaching a recent trade truce by restricting AI chip exports and revoking student visas. Beijing says the moves violate a 90-day tariff pause agreed upon last month. Washington insists the measures are necessary to address national security and tech imbalances.
China-U.S. Trade Tensions Quick Looks
- China accuses the U.S. of violating tariff pause deal
- U.S. restricts AI chip exports, chip design software, Chinese student visas
- Beijing warns of “resolute” retaliation to safeguard its interests
- 90-day tariff truce now under strain amid growing tech rivalry
- Trump slams China, claiming it broke the agreement
- U.S. says China is stalling negotiations agreed in Geneva
- Commerce Secretary Lutnick signals more “actions” if Beijing delays
- 275,000+ Chinese students in U.S. potentially affected
Deep Look: China Condemns U.S. Tech and Visa Moves as Violations of Trade Truce
TAIPEI, Taiwan — June 2, 2025 — Trade tensions between the United States and China reignited Monday after Beijing accused Washington of breaching a fragile tariff truce by imposing new restrictions on computer chip exports and student visas. The Chinese government warned of firm retaliation, threatening to undermine a deal that was meant to stabilize economic relations between the world’s two largest economies.
In a strongly worded statement, China’s Ministry of Commerce accused the U.S. of violating the consensus reached during recent Geneva trade talks. Under the 90-day agreement brokered in May, both sides had agreed to reduce the tariffs that had spiked under President Donald Trump’s renewed trade war strategy.
But China now claims that Washington’s unilateral actions — including guidelines to restrict AI chip exports, halting sales of semiconductor design software to China, and revoking visas for Chinese students — have breached the spirit and terms of the deal.
“These practices seriously violate the consensus,” the ministry said, stating that such moves increase “uncertainty and instability” in bilateral trade relations.
Beijing Says It Upheld Its End of the Deal
According to the Chinese government, it fulfilled its part of the May agreement by suspending and reducing retaliatory tariffs. U.S. Trade Representative Jamieson Greer confirmed last month that the United States agreed to lower Trump’s 145% steel tariff to 30%, while China reduced its duties on U.S. goods from 125% to 10%.
Now, Beijing claims Washington’s recent measures — particularly those aimed at technology and academia — amount to a unilateral escalation.
“The United States has unilaterally provoked new economic and trade frictions,” the Commerce Ministry said. It added that China would “continue to take resolute and forceful measures to safeguard its legitimate rights and interests.”
Trump Says China “Totally Violated” the Agreement
President Trump struck a combative tone late Friday, accusing China of violating the terms of the truce. “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump posted on his Truth Social platform. “So much for being Mr. NICE GUY!”
Speaking from the Oval Office shortly after the post, Trump told reporters he still intended to speak with Chinese President Xi Jinping to resolve the issue, but added, “I won’t let them walk all over us anymore.”
Commerce Secretary Howard Lutnick echoed Trump’s frustration, saying on Fox News that “the Chinese were just slow rolling the deal” and that Washington was “taking certain actions to show them what it feels like on the other side of that equation.”
Technology and Education at the Center of Tensions
At the core of the dispute are U.S. efforts to limit China’s access to advanced semiconductor technology. Washington is concerned that Chinese firms may exploit U.S.-developed chips and software for military or surveillance purposes.
The Biden-era export controls — many of which Trump has now expanded — include limitations on artificial intelligence processors and electronic design automation (EDA) tools essential for chip manufacturing.
Adding to the friction, the Trump administration announced plans to revoke student visas for Chinese nationals studying in sensitive STEM fields. The decision could impact over 275,000 Chinese students currently studying at U.S. institutions.
“These students are not just learners — they’re strategic assets,” said Lutnick, defending the administration’s decision.
Broader Geopolitical Rivalry Escalates
The resurgence of trade and tech friction reflects deeper geopolitical tensions. The U.S. and China are locked in a broader contest for global influence, particularly in the Asia-Pacific. Washington has reinforced military and tech partnerships with regional allies such as Taiwan, Japan, and South Korea — moves that China views as a challenge to its regional dominance.
China, for its part, is accelerating its ambition to displace the U.S. as the dominant power in advanced technologies, while also increasing pressure on Taiwan, a key player in the global semiconductor supply chain and a close U.S. ally.
Will the Tariff Truce Survive?
Analysts warn that the 90-day trade truce, already fragile, could unravel if both sides continue to escalate retaliatory measures. With neither government showing signs of backing down, global markets are bracing for renewed volatility.
“This truce was always paper-thin,” said Alicia Garcia Herrero, Asia-Pacific chief economist at Natixis. “What we’re seeing now is the unraveling of a temporary pause, not a permanent reset.”
For now, the U.S. insists it is enforcing fair standards and protecting national interests. China, meanwhile, portrays itself as the aggrieved party maintaining restraint in the face of Washington’s provocations.
As the deadline for the truce approaches in mid-August, the risk of a full-blown trade rupture looms again.
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