Trade Turbulence: US-China Agreement Shaken Amid AI Chip Export Ban

On Monday, China strongly criticized the United States for recent actions harming Chinese interests, including the establishment of artificial intelligence chip export control guidelines, halting the sale of chip design software to China, and plans to revoke visas for Chinese students studying in the US.

These actions "seriously violate the consensus" reached during last month's trade discussions in Geneva, according to a statement from China's Commerce Ministry. The statement referenced a joint agreement where China and the US agreed to reduce tariffs and resume trade between the globe's two largest economies.

This agreement, designed to last 90 days, leaves existing tariffs higher than before, leading to uncertainty in business and investment circles. Despite a temporary reduction in tariffs by both nations, the friction remains, with both sides accusing the other of violating the agreement. The US began retracting Chinese student visas, worsening tensions as each country races for technological supremacy.

(With inputs from agencies.)