Beijing
CNN
–
A 1-2 punch from the US risks shattering the already fragile trade war ceasefire between Washington and Beijing, with both Chinese tech companies and students taking a shocking blow by the Trump administration on Wednesday night.
Things were being looked up after the two biggest economies of the world agreed to dramatically rewind the sudden tariffs, as seen from within China.
The factory was beginning to become enthusiastic once again. Long-standing shipping containers have begun to leave China’s ports for the US. While Chinese media celebrated the agreement as a national victory, the highest officials adopted a cheerful tone when explaining cooperation between the two superpower rivals.
But two jabs from Washington on Wednesday have far-reaching effects across China, angering families and authorities. They also question the future of US-China trade talks. The temporary ceasefire lasts only 90 days, and the clock is ticking to reach a long-term agreement.
The first hit was in a Financial Times report on Wednesday that a move by US President Donald Trump effectively blocked the sale of software used to design semiconductors to China.
A Siemens spokesperson later told CNN that the US government on Friday informed the industry about new export controls regarding chip design software for China and China’s military end users.
These small chips have bolstered smartphones, computers, automobiles and home appliances, but have been at the forefront of US-China technology battles in recent years. The Biden administration blocked China from accessing US-made semiconductors, and earlier this month Washington warned businesses about using AI chips created by Chinese tech giant Huawei.
The obstacles were furious for Beijing, especially as they poured tens of thousands of dollars into the semiconductor industry, boosting home production and not relying on the US or other countries.
Liu Pengyu, a spokesman for the US Chinese Embassy, declined to comment on the reported chip software moves, but accused the US of “overstretching the concept of national security, abused export controls, and maliciously blocked and restrained China.”
However, landing in the Chinese family’s living room was the second blow from the White House, with US Secretary of State Marco Rubio saying the US will “actively cancel visas for Chinese students.”
It’s hard to exaggerate the impact. In 2024 there were over 270,000 Chinese students in the United States, but even before the pandemic. Some come from China’s political and business elites, but many also come from middle class families.
The road to the US is attractive, but difficult. Chinese families save years, spend exorbitant amounts of money to send their children abroad, and students attend cram schools and hire private tutors to hone their applications. Rubio’s announcement puts all of that at risk. Students face potential deportation in the middle of a hard-working education.
As China is a one-party state that reaches deep into almost every aspect of society, it can be difficult or impossible to disprove the claim that many students are associated with the Communist Party.
A spokesman for China’s foreign ministry on Thursday accused the US of “unfairly” revoking its visa “under the pretext of ideology and national security,” and said it was “strongly opposed” to the move.
Candy, a statistical student at the University of Michigan, said she didn’t want to give her her full name and feared that her visa would be cancelled before graduation.
“It’s something I’m afraid to finish with just a high school diploma,” she said from China, where she is visiting her family. “I hope that your undergraduate course is safe and smooth.”
“When I first heard the news, I wanted to curse Trump.”
The visa threat arises as a shock, but some argue that targeting students is actually a boon for China in the end.
The number of Chinese students in the US has been declining in recent years, in part due to significant changes in both policy and public perception. Experts say many Chinese students and families are now worried about the safety of the United States, racism and discrimination, and the difficulties of immigration. Particularly because other countries, including China itself, are opening up more competitive higher education options.
Trump’s crackdown will allow us to see more Chinese scholars, including some of the brightest minds in their field, and return to our country. Or, they chose to reject US education because of their Chinese degree in the first place.
And these researchers, including leading leaders in the technology field, could be key to catch up with China, or to reel them into the US, the very things many Trump officials are trying to prevent.
Wednesday brought a bit of good news to China. Federal courts prevented Trump from impose most of his global tariffs, including China’s current 30% tariffs. However, the administration quickly appealed the decision, leaving those tariffs and trade war status in the air.
