China believes it is a truce with the United States. Then Trump dropped two bombshells
A boxing or two from the United States could undermine the already fragile trade war between Washington and Beijing, with Chinese tech companies and students slamming the Trump administration Wednesday night.
Watching from within China, people have been on the rise after the two largest economies in the world agreed to sharply reverse steep tariffs, a reconciliation step in a trade war that threatens the entire global trading system.
The factory started spinning again. Long-term delayed transport containers began to leave Chinese ports and were destined to travel to the United States. Chinese media celebrated the deal as a national victory, while senior officials took an optimistic tone when describing cooperation between the two superpower rivals.
But two piercings from Washington on Wednesday will have far-reaching impacts in China, angering families and authorities. They also questioned the future of U.S.-China trade negotiations; the temporary truce lasted only 90 days, and the clock was reaching a long-term agreement.
The first blow came in a report in the Financial Times on Wednesday that U.S. President Donald Trump’s move effectively cut off some U.S. companies from selling software used to design semiconductors in China.
A Siemens spokesman later told CNN that the U.S. government introduced new export controls on chip design software to Chinese and Chinese military end users on Friday.
These small chips (powering our smartphones, computers, cars and home appliances) have been in the earliest state of the US-China tech battle in recent years. The Biden administration has blocked China’s entry into U.S.-made semiconductors, and earlier this month, Washington warned companies not to use AI chips made by Chinese tech giant Huawei.
On April 14, 2025, a semiconductor silicon wafer at the Rochester Technology of The Rochester Institute of Proginute of Micro Chip microprocessor manufactured in Henrietta, New York. -April 14, 2025.
These barriers are shocked by Beijing, especially as it has already invested billions of dollars into its semiconductor industry, aiming to increase production at home and reduce reliance on the United States and other countries.
Liu Pengyu, a spokesman for the Chinese embassy in the United States, declined to comment on the reported chip software mobile, but accused the United States of “overstretching the concept of national security, abuse of export controls, and maliciously blocking and suppressing China” in a statement to CNN.
But this is the second blow from the White House, landing in the living room of Chinese families, and U.S. Secretary of State Marco Rubio said the United States will “actively revoke visas for Chinese students,” especially those in key areas or ties to the Chinese Communist Party.
It’s hard to exaggerate the impact. In 2024, there were 270,000 Chinese students in the United States, even before the pandemic. Although some come from Chinese political and business elites, many also come from middle-class families.
The road to the United States is attractive, but difficult. Chinese families have saved years and spent a lot of money to send their children abroad, and students attend Cram schools or hire tutors to make applications. Rubio’s announcement jeopardizes all of this – in a difficult education, students are now facing potential deportation.
Given that China is a one-party state that is almost in-depth in society, it is difficult or impossible for many students to prove any claim that they have ties to the Communist Party – especially if the State Council has laxly defined the term.
A spokesman for the Chinese Foreign Ministry said on Thursday that he had “strongly opposed” the move, accusing the United States of revoking visas “using ideology and national security as an excuse.”
Candy, a statistics student at the University of Michigan, doesn’t want to give her full name, and she says she is worried that her visa will be cancelled before graduation.
“I ended up only getting a high school diploma,” she said, “and I prayed to go through my undergraduate studies safely and smoothly.”
“When I first heard this, I wanted to curse Trump.”
While the visa threat is shocking, some believe that ultimately, the student’s goal may actually be a boon for China.
The number of Chinese students in the United States has been declining in recent years, partly due to significant changes in policy and public perception. Experts say many Chinese students and families are now worried about U.S. security, racism and discrimination, and immigration difficulties, especially with open and competitive higher education options in other countries, including China itself.
Trump’s crackdown may see more Chinese scholars, including some of the smartest people in their field, return to their homeland, or choose to stay first and refuse education with a Chinese degree.
These researchers, including major leaders in the technology field, may be the key to China catching up or surpassing the United States – something many Trump officials are trying to prevent.
Wednesday did bring good news to China. Federal courts blocked Trump from imposing most of his global tariffs, including the current 30% tariff on China. But the government immediately appealed the decision, leaving these tariffs and the status of the trade war unresolved.
CNN’s Cynthia Chan contributes to this report
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