Trump reconsiders China AI chip export controls amid bipartisan pushback

The Trump administration is reconsidering its tough stance on China technology export controls, potentially scrapping plans to replace a Biden-era AI export rule that restricts US chip technology from flowing to China and Russia. This shift reflects conflicting priorities as Trump seeks leverage in trade negotiations while maintaining his reputation as tough on China, drawing bipartisan criticism from lawmakers who argue the moves could strengthen Beijing’s AI capabilities.

What you should know: The administration has already approved sales of certain Nvidia semiconductors to China and is debating whether to abandon the AI diffusion rule entirely.

• Two industry sources told Semafor that officials are reconsidering plans to replace the global export control framework established under Biden.
• The administration’s new AI plan calls for more open-source and open-weight models despite concerns these could benefit China.
• No final decision has been made on the export rule replacement, with ongoing debates within the White House and Commerce Department.

What lawmakers are saying: Bipartisan criticism has emerged over the semiconductor approvals, with Republicans and Democrats expressing concern about helping China.

• “I think it’s a mistake,” Sen. John Kennedy (R-La.) said of approving chip sales to China, adding “Because all they’re doing is helping China. I just think it’s a huge mistake.”
• “What I see out in plain view is the president is helping a giant corporation make big money by moving chips to China instead of prioritizing the work done here in the United States,” Sen. Elizabeth Warren (D-Mass.) told Semafor.
• Senate Democrats, including Minority Leader Chuck Schumer, sent a letter to Commerce Secretary Howard Lutnick arguing that chip export curbs are essential for maintaining US AI computing advantages.

The strategic context: Trump faces competing pressures between maintaining his China hawk credentials and advancing trade negotiations.

• The Biden administration had approved Nvidia’s H20 chips for China export under strict controls, which Trump initially moved to tighten before reversing course.
• Similar assurances were given to AMD regarding chip exports, according to Bloomberg.
• The moves may signal that tech industry advisers are gaining influence over China hawks within the administration.

Room for disagreement: Some Republicans argue the approved chips aren’t the most advanced technology, making the sales more acceptable.

• “The question is: Do you force them to create their own capabilities faster than what they otherwise would? Or do you provide them with chips that aren’t top of the line,” said Sen. Mike Rounds (R-S.D.).
• Sen. Todd Young (R-Ind.) suggested blocking H20 chip sales could “create an atmosphere in which Huawei steps into the breach” and develops competing technology.

Expert analysis: Policy experts see the moves as Silicon Valley gaining influence over traditional national security concerns.

• “It certainly seems — at the moment, at least — that the tech side has the upper hand,” said Geoffrey Gertz, senior fellow at the Center for a New American Security.
• Michael Sobolik from the Hudson Institute argued the administration was “effectively capitulating to Silicon Valley,” warning that “Silicon Valley tech giants are demanding a veto” over China policy.

Notable developments: Several related AI and chip developments are creating additional complexity for US-China tech relations.

• Trump’s plan to allow advanced chip exports to the UAE is stalled over concerns China could gain access to the technology.
• Huawei, the Chinese tech giant, debuted an AI computing system over the weekend that could rival Nvidia’s offerings.
• Abandoning the AI diffusion rule would provide Trump more flexibility in trade talks with China, a top priority for Treasury Secretary Scott Bessent.