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China Threatens Legal Action Over U.S. Chip Restrictions Targeting Huawei

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China has issued a sharp warning, stating that it may pursue legal consequences against individuals or organizations that participate in enforcing or complying with U.S. restrictions aimed at limiting the use of advanced Chinese semiconductors.

The statement, released by China’s Ministry of Commerce, comes in response to new U.S. guidance issued last week. That guidance warned companies they may violate U.S. export controls if they use Ascend AI chips made by Shenzhen-based tech giant Huawei.

China accused the U.S. of engaging in “discriminatory restrictive measures” and warned of “corresponding legal liabilities” for those who assist or implement such policies. The ministry urged Washington to respect international trade laws and to stop actions that disrupt global supply chains or unfairly target Chinese firms.

The escalation reflects mounting tensions in the global tech war between the U.S. and China. Huawei, which has long been a focal point in this dispute, continues to face export restrictions over alleged national security concerns. The new U.S. advisory targets the AI segment — a crucial area of technological competition — where Huawei’s Ascend chips are gaining traction.

While the Chinese statement did not specify what form legal action might take, the warning suggests that Beijing could respond with domestic legal challenges or retaliatory trade and regulatory measures against companies perceived as cooperating with U.S. sanctions.

China Slams U.S. for ‘Abusing’ Export Controls Over Huawei AI Chip Guidance

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China has sharply criticized the United States for what it called the “abuse of export control measures”, following new U.S. guidance warning companies against using Huawei’s Ascend AI chips. The Chinese Ministry of Commerce said the move threatens the stability of global semiconductor supply chains and vowed to take action to protect the rights of its domestic companies.

At a press conference on Thursday, Commerce Ministry spokesperson He Yongqian urged Washington to “correct its practices” and accused the U.S. of targeting Chinese tech firms unfairly.

Background:

  • On Tuesday, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) issued new guidance stating that companies using Huawei’s Ascend chips—the firm’s most advanced AI semiconductors—risk violating U.S. export controls.

  • These chips are produced by Huawei, a Shenzhen-based tech giant already subject to sweeping U.S. restrictions, and are seen as direct competitors to products from American chipmakers like Nvidia in the Chinese AI market.

China’s Reaction:

The Chinese government views the BIS warning as a deliberate attempt to suppress China’s tech advancement and influence in artificial intelligence. The Ministry emphasized that it will take “necessary measures” to safeguard the legitimate interests of Chinese enterprises.

The dispute underscores growing U.S.–China tensions over semiconductor technology and AI dominance, with Washington seeking to restrict China’s access to critical hardware and Beijing accusing the U.S. of weaponizing trade rules to stifle competition.

This development also comes as the global tech industry becomes increasingly fragmented, with countries pursuing “chip sovereignty” strategies to reduce reliance on foreign suppliers.

Rogue Communication Devices Found in Chinese Solar Inverters Spark Global Security Alarm

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U.S. energy officials are reevaluating the national security risks posed by Chinese-made power inverters after uncovering unexplained communication components inside devices used in critical infrastructure across the U.S., according to multiple sources with knowledge of the matter.

These undocumented modules, such as cellular radios, were discovered in inverters and batteries produced by Chinese manufacturers, raising concerns that firewalls could be bypassed, allowing remote manipulation or shutdowns of energy systems — with potentially catastrophic consequences for power grids.

“That effectively means there is a built-in way to physically destroy the grid,” one expert warned.

What Are Inverters and Why This Matters

Inverters are vital for connecting solar panels, batteries, heat pumps, and EV chargers to the power grid. Most are produced in China and designed to allow remote updates, but are expected to be firewalled from foreign access. The recent discovery, however, suggests that some Chinese models include hidden communications hardware, not disclosed in product documentation.

Implications for National Security and Grid Stability

  • Disruption risk: Experts warn that coordinated manipulation of these devices could trigger blackouts, grid damage, or widespread energy instability.

  • Huawei, the world’s leading inverter manufacturer, left the U.S. market in 2019 but dominates globally, especially in Europe.

  • Over 200 GW of European solar power is linked to Chinese inverters, equivalent to more than 200 nuclear plants.

“If you remotely control a large enough number of home solar inverters… that could have catastrophic implications,” said Uri Sadot of SolarEdge.

Government and Industry Response

  • The U.S. Department of Energy (DOE) acknowledged the challenge of ensuring manufacturers disclose full functionality. It is working to enhance transparency via Software Bill of Materials (SBOM) policies and contractual safeguards.

  • The U.S. Senate is considering the Decoupling from Foreign Adversarial Battery Dependence Act, targeting Chinese firms like CATL, BYD, Envision Energy, and others from 2027 onward.

  • Utilities such as Florida Power & Light are already seeking to reduce their reliance on Chinese inverter components.

  • Lithuania, Estonia, and Britain have also begun reassessing or restricting the use of Chinese inverters, with NATO warning that China’s influence over infrastructure is a growing threat.

“The CCP stops at nothing to target our sensitive infrastructure,” said U.S. Representative August Pfluger.

Recent Incidents and Commercial Fallout

  • In November 2024, some inverters were reportedly disabled remotely from China, triggering internal industry disputes and heightened U.S. government scrutiny.

  • A commercial conflict between Sol-Ark and Deye ensued, with Sol-Ark confirming it had no control over affected devices not bearing its brand.

  • Chinese firms Huawei, Deye, and others declined to comment.

As the solar and renewable energy sector expands, experts are calling for urgent reforms to ensure hardware used in critical infrastructure is trusted, secure, and transparent — echoing the regulatory efforts already in place in sectors like telecom and semiconductors.