Washington warned that using Huawei's chips could violate export controls. Beijing thinks that undermines "consensus" from the Geneva trade talks.

China is threatening legal action against anyone enforcing the U.S.' recent guidelines against using Huawei's AI chips.

The Commerce Department issued guidance stating that the use of Huawei Technologies Co.’s Ascend artificial intelligence chips “anywhere in the world” violates the government’s export controls, escalating US efforts to curb technological advances in China.