US urged to remove more restrictions

Beijing has called on Washington to further remove unreasonable trade restrictions after the White House recently approved Nvidia's resumption of sales of its H20 artificial intelligence chips to China.

"Cooperation and mutual benefit are the right path forward for China and the United States, while suppression and containment have no way out," a spokesperson with the Ministry of Commerce said on Friday, urging the US to abandon its "zero-sum mentality".

Following economic and trade talks in London last month, China and the US have maintained "close communication", having affirmed details of the framework established in London, and they are progressing with implementation, the spokesperson said.

Analysts said that Nvidia's resumption is part of the outcomes of the trade talks between Beijing and Washington.

But US Treasury Secretary Scott Bessent implied during an interview with Bloomberg Television on Tuesday that the US approved Nvidia's H20 sales to China because Chinese tech giant Huawei can already make equivalent chips.

"I think that would be a judgment that the Chinese indigenous manufacturers, namely Huawei and some others, already have an equivalent chip. So, if there is an equivalent chip, then the Nvidia H20 could be sold," Bessent said.

In May, the US Commerce Department's Bureau of Industry and Security warned that using Huawei's Ascend chips "anywhere in the world" could be a violation of its export controls.

The US has tightened restrictions on Chinese chip products based on unfounded accusations, and such administrative interference in fair market competition severely undermines the legitimate rights and interests of Chinese companies, the spokesperson said, adding that, "We hope that the US will work with China to meet each other halfway, rectify its wrong practices through equal consultations, and foster a favorable environment for mutually beneficial cooperation between enterprises of both countries."

On Thursday, the US Commerce Department decided on preliminary antidumping duties of 93.5 percent on imports of Chinese graphite, a key battery component, alleging that the materials had been unfairly subsidized.

Removing hefty tariffs

Chen Wenling, former chief economist at the China Center for International Economic Exchanges, said that to genuinely resolve the economic and trade issues between the two economic powerhouses, the US must act in accordance with WTO rules and remove all hefty tariffs and restrictive measures imposed on China.

"It is in the best interests of both countries to resolve their differences through consultations," Chen said. "But China has ample policy preparation to address the trade war initiated by the US anyway."