The Chinese Commerce Ministry issued a stark warning on Wednesday, declaring that anyone aiding in the enforcement of U.S. restrictions on Huawei Technologies' chips could face legal consequences under China's Anti-Foreign Sanctions Law. Though no specific penalties were detailed, the message signaled a sharp escalation in the tech war even as both nations try to salvage a fragile trade détente.

The U.S. Commerce Department had earlier warned that use of Huawei semiconductors “anywhere in the world” would breach export controls, but later removed the global reference. Chinese officials argue these actions jeopardize hard-won trade understandings, including those negotiated in Geneva.

Diplomatic Channels Remain Active

Despite the spike in tensions, Chinese officials continue to advocate for improved relations. On the same day as the legal threat, Vice Foreign Minister Ma Zhaoxu met with newly appointed U.S. Ambassador David Perdue, expressing hope for cooperation. Meanwhile, top officials on both sides, including China's Foreign Minister Wang Yi and Asia Society CEO Kyung-wha Kang, emphasized the need for strategic engagement in the Asia-Pacific.

These meetings follow earlier talks in Switzerland that resulted in a 90-day suspension of certain reciprocal tariffs, though major trade duties remain.

Parallel Tracks: Dialogue vs. Sanctions

The latest round of threats highlights the difficulty in managing the world’s most consequential bilateral relationship. While both Beijing and Washington have taken steps to avoid a complete trade breakdown, semiconductor and strategic tech competition remain central flashpoints. Whether upcoming high-level engagements can produce substantive compromise is still uncertain.