Trump Administration Pauses Tech Export Controls to China, Sparking AI Security Concerns

Trump freeze on export restrictions to China reportedly in aid of trade talks -- White House seeking face-to-face with Xi Jinping this year as dissenters warn H20 reversal is a dangerous mis-step

As trade talks resume this week, security experts pressure the White House to maintain economic pressure points. The U.S. government has reportedly halted the curbs on technology-based exports to China as part of its ongoing trade negotiations, as reported by the Financial Times. This follows what is described as "months" of encouragement by the administration to the industry and security bureau of the Commerce Department to avoid any tough moves on China. Although the industry has responded swiftly and positively, not all members of the Trump administration are happy with this ongoing stance. U.S. President Trump has postured with aggressive stances on trade towards China for years, and made a major show earlier this year of halting shipments of important technology products, like GPUs for AI training and inference, alongside instigating sharp import tariffs that all but halted much of China's trade with America. However, although his administration talked a big game in its trade war with China, a new report suggests that its stance has been far more moderated behind the scenes and that it's now all-but-halted its export restrictions as part of the ongoing trade talks. The pause in blocks on exports is reportedly an effort to augment the ongoing Trump administration trade talks with China, with Trump himself keen to secure a meeting with Chinese President Xi Jinping sometime this year. Talks are set to resume in Stockholm, Sweden, this Monday, though it's not clear what progress is expected to be made. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet, with some suggestions that a further meeting between the two countries' leaders will be a major topic of discussion. Trump himself said on Friday, before leaving for his trip to Scotland, that the "confines" of a deal with China had been made, but wouldn't elaborate on any details. The more subdued stance towards China and exports to the country have pleased many industry heads. Nvidia announced earlier this month that it would resume trade of its in-demand H20 AI inference GPU to China. Though this comes in the wake of reports of major smuggling and illicit repair operations, which maintained Chinese industry access to this kind of technology, despite the trade blocks. However, while companies that thrive on Chinese trade are keen to take advantage of this lull in economic hostilities, not everyone within the Trump administration is pleased. The Financial Times reports that a letter signed by over 20 ex-US administrative officials has been sent to the Trump administration, urging it to reverse course on its tech export bans, especially with regard to Nvidia GPUs. "The decision to ban H20 exports earlier this year was the right one. We ask you to stand by that principle and continue blocking the sale of advanced AI chips to China as America works to maintain its technological edge," it reads. It goes on to suggest that the relaxation of restrictions would embolden China to chase further exceptions and special treatment, support its military development, accelerate its AI ambitions, and harm America's own supply of the much-needed H20 GPU, describing the move as a "mis-step that endangers the United States' economic and military edge in artificial intelligence." The White House has yet to release a statement on the letter or the alleged cessation of trade blocks.

Trump pauses export controls to bolster China trade deal, FT says

July 28 (Reuters) - The U.S. has paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support President Donald Trump's efforts to secure a meeting with President Xi Jinping this year, the Financial Times said on Monday. The industry and security bureau of the Commerce Department, which oversees export controls, has been told in recent months to avoid tough moves on China, the newspaper said, citing current and former officials. Reuters could not immediately verify the report. The White House and the department did not respond to Reuters' requests for comment outside business hours. Top U.S. and Chinese economic officials are set to resume talks in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies. Tech giant Nvidia (NVDA.O), opens new tab said this month it would resume sales of its H20 graphics processing units (GPU) to China, reversing an export curb the Trump administration imposed in April to keep advanced AI chips out of Chinese hands over national security concerns. The planned resumption was part of U.S. negotiations on rare earths and magnets, Commerce Secretary Howard Lutnick has said. The paper said 20 security experts and former officials, including former deputy US national security adviser Matt Pottinger, will write on Monday to Lutnick to voice concern, however. "This move represents a strategic misstep that endangers the United States' economic and military edge in artificial intelligence," they write in the letter, it added. Reporting by Shivani Tanna in Bengaluru; Editing by Tom Hogue and Clarence Fernandez Our Standards: The Thomson Reuters Trust Principles., opens new tab

Trump temporarily drops export controls to smooth negotiations with China

The move is a 'strategic misstep,' former US security officials told the Trump administration. After previously saying that the US would block exports of key AI chips to China, Donald Trump's administration may have backtracked. The US will now temporarily block restriction on exports of chips and other technology to China, the Financial Times reported. The aim is to help Trump book a meeting with China President Xi Jinping later this year in order to strike a trade deal, according to people familiar with the matter. Export controls are dictated by the US Commerce Department, which was reportedly told to avoid tough moves on China, according to eight people including current and former US officials. Trump is said to have wanted to avoid angering Xi due to the risk of China retaliating further on the export of crucial rare earths and magnets. Last week, NVIDIA said it would be able to resume selling key AI chips to China after being blocked earlier by the Department of Commerce. "The US government has assured NVIDIA that licenses will be granted and NVIDIA hopes to start deliveries soon," the company stated in a blog post. Today's news of frozen export controls effectively backs up that statement. However, 20 people including security experts and former US officials, including from Trump's previous administration, wrote the Department of Commerce saying it was a bad idea to give China access to advanced AI chips. "This move represents a strategic mis-step that endangers the United States' economic and military edge in artificial intelligence," they said in a letter. "By supplying China with these chips, we are fueling the very infrastructure that will be used to modernize and expand the Chinese military."

Trump Pauses Export Controls to Bolster China Trade Deal, FT Says

(Reuters) -The U.S. has paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support President Donald Trump's efforts to secure a meeting with President Xi Jinping this year, the Financial Times said on Monday. The industry and security bureau of the Commerce Department, which oversees export controls, has been told in recent months to avoid tough moves on China, the newspaper said, citing current and former officials. Reuters could not immediately verify the report. The White House and the department did not respond to Reuters' requests for comment outside business hours. Top U.S. and Chinese economic officials are set to resume talks in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies. Tech giant Nvidia said this month it would resume sales of its H20 graphics processing units (GPU) to China, reversing an export curb the Trump administration imposed in April to keep advanced AI chips out of Chinese hands over national security concerns. The planned resumption was part of U.S. negotiations on rare earths and magnets, Commerce Secretary Howard Lutnick has said. The paper said 20 security experts and former officials, including former deputy US national security adviser Matt Pottinger, will write on Monday to Lutnick to voice concern, however. "This move represents a strategic misstep that endangers the United States' economic and military edge in artificial intelligence," they write in the letter, it added. (Reporting by Shivani Tanna in Bengaluru; Editing by Tom Hogue and Clarence Fernandez)

Trump pauses export controls to bolster China trade deal, FT says

(Reuters) -The U.S. has paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support President Donald Trump's efforts to secure a meeting with President Xi Jinping this year, the Financial Times said on Monday. The industry and security bureau of the Commerce Department, which oversees export controls, has been told in recent months to avoid tough moves on China, the newspaper said, citing current and former officials. Reuters could not immediately verify the report. The White House and the department did not respond to Reuters' requests for comment outside business hours. Top U.S. and Chinese economic officials are set to resume talks in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies. Tech giant Nvidia said this month it would resume sales of its H20 graphics processing units (GPU) to China, reversing an export curb the Trump administration imposed in April to keep advanced AI chips out of Chinese hands over national security concerns. The planned resumption was part of U.S. negotiations on rare earths and magnets, Commerce Secretary Howard Lutnick has said. The paper said 20 security experts and former officials, including former deputy US national security adviser Matt Pottinger, will write on Monday to Lutnick to voice concern, however. "This move represents a strategic misstep that endangers the United States' economic and military edge in artificial intelligence," they write in the letter, it added. (Reporting by Shivani Tanna in Bengaluru; Editing by Tom Hogue and Clarence Fernandez)