Trump Officials Consider Broader China Tech Export Restrictions Ahead of Trade Talks

US Commerce Department officials considered stricter export limits on semiconductors to China ahead of recent trade talks in London. The proposed measures would have targeted chip-manufacturing equipment, expanding beyond existing restrictions on advanced chip production. The move aimed to strengthen the Trump administration's trade arsenal amid rising tensions with Beijing.

The US Commerce Department is reportedly considering stricter export limits on semiconductors to China ahead of recent trade talks in London. The proposed measures would target chip-manufacturing equipment, expanding beyond existing restrictions on advanced chip production. This move aims to bolster the Trump administration's trade arsenal amidst rising tensions with Beijing.

Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, warned lawmakers that while Huawei Technologies is capable of producing no more than 200,000 advanced AI chips in 2025, China is rapidly catching up to U.S. capabilities. Kessler emphasized that the U.S. should not underestimate China's investment in AI chip production and its capabilities [1].

The proposed export controls come as the U.S. and China reached a tentative trade truce in London, following a previous agreement that faltered over China's continued curbs on mineral exports. The Trump administration responded by imposing additional export controls on semiconductor design software, jet engines for Chinese-made planes, and other goods [2].

Taiwan has also recently placed Huawei and Semiconductor Manufacturing International Corporation (SMIC) on its export control list, aligning with Washington's crackdown on companies fueling Beijing's ambitions in artificial intelligence. This move underscores Taiwan's commitment to cooperating with the U.S. in addressing security concerns [3].

Huawei's CEO Ren Zhengfei stated that the company's chips are a generation behind those of U.S. competitors but invests more than $25 billion annually to improve performance. Meanwhile, Nvidia's AI chips are more powerful but have lost market share due to Washington's export controls on its most sophisticated chips [1].

The proposed measures are part of a broader strategy to strengthen the U.S. trade position against China. Kessler indicated that the Commerce Department will remain active in this space, ensuring that controls remain effective as the landscape evolves [1].

References:
[1] https://www.investing.com/news/economy-news/us-says-chinas-huawei-cant-make-more-than-200000-ai-chips-in-2025-4093904
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SF0RK:0-us-says-china-s-huawei-can-t-make-more-than-200-000-ai-chips-in-2025/
[3] https://www.indexbox.io/blog/taiwan-tightens-export-controls-on-huawei-and-smic/