President Trump’s China trade deal efforts have actually taken an unexpected turn as the US administration freezes technology export restrictions to avoid derailing talks with Beijing. The administration has put Trump’s tech sanctions on hold, while US export controls face scrutiny amid concerns over AI chip exports and an ongoing semiconductor export freeze. Right now, officials have instructed the Commerce Department to avoid tough moves against China. After all, both nations prepare for their third round of Stockholm negotiations.
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Trump-China Trade Deal, Tech Sanctions, Export Controls, and AI Chips
Export Controls Frozen for Trade Progress
Trump’s China trade deal strategy led to a freeze on technology restrictions, with eight officials confirming that Trump tech sanctions were put on hold. The Bureau of Industry and Security was told to avoid aggressive US export controls moves against Beijing. President Trump seeks a Xi Jinping meeting this year.
Nvidia H20 Chip Becomes Central Issue
The battle over AI chip exports centers on Nvidia’s H20 chip, designed for China after Biden-era restrictions. Trump initially planned to block the chip through US export controls in April, but reversed course following Jensen Huang’s lobbying efforts. The semiconductor export freeze reflects security concerns about autonomous weapons development.
Security Experts Sound Alarm
Twenty security experts plan to write to Commerce Secretary Howard Lutnick voicing concerns about the administration’s approach.
Matt Pottinger and fellow security experts stated:
“This move represents a strategic mis-step that endangers the United States’ economic and military edge in artificial intelligence.”
Jimmy Goodrich stated:
“The H20 is the gasoline fuelling China’s AI engine.”
James Mulvenon said:
“These decisions will determine which political system, which values, will ultimately control the most powerful technology in the history of the world.”
Steve Bannon stated:
“American companies spent decades being made fools of, getting duped by the Chinese Communist party transferring the crown jewels of our technology.”
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Despite export licence requirements, no H20 permits have been issued. This is basically reflecting the administration’s cautious approach while pursuing Trump’s China trade deal amid Stockholm negotiations.