A temporary truce in the US-China trade war is facing significant challenges after two major announcements from the Trump administration. The moves have sparked widespread concern in China, affecting both tech companies and students.
Tech Industry Hit Hard
The US government has effectively cut off some American companies from selling software used to design semiconductors to China. This decision targets the production of small chips that power smartphones, computers, automobiles, and home appliances. China’s semiconductor industry, which has received tens of billions of dollars in investment, is particularly affected. Liu Pengyu, spokesperson for the Chinese Embassy in the US, criticized the US for “overstretching the concept of national security, abusing export controls, and maliciously blocking and suppressing China”.
Chinese Students in the US Face Uncertainty
The Trump administration announced plans to “aggressively revoke visas for Chinese students” in critical fields or with connections to the Chinese Communist Party. Over 270,000 Chinese students were studying in the US in 2024, many from middle-class families who have invested heavily in their children’s education. Candy, a University of Michigan statistics student, expressed her fears, saying, “Ending up with only a high school diploma is something I dread… When I first heard the news, I wanted to curse Trump.”
Potential Consequences
While the visa threat may shock Chinese students, some experts believe it could ultimately benefit China. With growing concerns about safety, racism, and immigration difficulties in the US, Trump’s crackdown might encourage top Chinese scholars to return home or choose Chinese universities over American ones. This could potentially boost China’s technological advancements.
Tariffs and Trade War
In a separate development, a federal court blocked Trump from imposing most of his global tariffs, including the current 30% tariffs on China. However, the administration has appealed the decision, leaving the status of tariffs and the trade war uncertain.