Tech curbs? Not today: Trump courts China with chip diplomacy

Donald Trump paused planned curbs on Nvidia's H20 chip exports to China, prioritising trade ties and a Xi Jinping summit despite warnings from security experts and ex-officials

US President Donald Trump has reportedly paused new technology export restrictions on China in an effort to preserve ongoing trade negotiations and secure a meeting with Chinese President Xi Jinping.

 

The move, which reportedly followed lobbying from chipmaker Nvidia, has drawn sharp criticism from national security experts who say it risks aiding China’s military AI capabilities. 

 

What’s the latest

 

According to a Financial Times report, Trump’s administration has directed the US Commerce Department’s Bureau of Industry and Security (BIS) to hold back on introducing tougher export controls on China in recent months.

 

A key turning point came when Nvidia CEO Jensen Huang personally lobbied against a planned ban on the H20 chip, designed for the Chinese market. The administration reversed course, fearing Chinese retaliation and disruption to trade talks.

 

In May, China imposed its first-ever restrictions on exports of rare earths and magnets, intensifying concerns in Washington about economic retaliation.

 

What it matters

 

Critics argue the freeze on export controls undermines America’s national security and technological edge, the news report said.

 

A group of 20 security experts and former officials are set to send a letter to Commerce Secretary Howard Lutnick, warning against allowing H20 exports. “This move represents a strategic mis-step that endangers the United States’ economic and military edge in artificial intelligence,” the letter reads.  The advocacy group Americans for Responsible Innovation helped coordinate the effort.

 

The group believes that the H20 chip could significantly accelerate China’s military capabilities by outperforming the more restricted H100 chip in "inference", the execution phase of AI tasks.

 

James Mulvenon, an expert on China’s military, said the issue extends beyond one chip or company. “These decisions will determine which political system, which values, will ultimately control the most powerful technology in the history of the world,” he said, as quoted by the news report.   

 

Pushback from Nvidia

 

Nvidia defended its position, calling the criticism “misguided” and inconsistent with Trump’s AI action plan, which emphasises US leadership in global AI exports. The company said that the H20 “will not enhance anyone’s military capabilities, but will help America win the support of developers worldwide".

 

Delays and internal frustration

 

Despite plans reported in May to expand the export blacklist to include more Chinese chipmaker subsidiaries, BIS has yet to act. Some officials are frustrated that Trump is prioritising trade talks over decisive action on technology controls, the news report said.