The U.S. government has reportedly relaxed the curbs on technology-based exports to China in order "to avoid hurting trade talks with Beijing" and help secure a face-to-face meeting between President Trump and Xi Jinping, according to 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.
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