Trump pauses tech ship-outs restrictions to China
(MENAFN) The Trump administration has put a hold on major technology export restrictions to China, according to the Financial Times, in an effort to support sensitive trade negotiations and facilitate a potential meeting between President Trump and Chinese President Xi Jinping later this year. The US and China, the world’s two largest economies, are currently engaged in their third round of talks aimed at extending a tariff truce and reducing economic tensions.
Sources reveal that the US Commerce Department’s Bureau of Industry and Security (BIS) has been directed to avoid strict export controls on China, partly due to fears that Beijing might retaliate by restricting critical raw materials exports. China controls much of the global supply of rare-earth minerals vital to American industries like electronics, renewable energy, and defense.
A key example of this shift is Nvidia’s H20 graphics processing unit, which was restricted in April over concerns it could boost China’s military AI. Initially, Nvidia needed special licenses for exports, but after lobbying by CEO Jensen Huang, the White House allowed sales without such licenses, and shipments have since resumed.
China criticized the export controls as politicizing trade, warning that they would disrupt global supply chains. While the move pleases the US tech sector, some within the Trump administration worry it could weaken US dominance in strategic technologies, describing the H20 chip as a powerful enabler of China’s AI progress. Nvidia insists the chip complies with export rules and poses no military threat.
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