On July 28 (local time), the British daily Financial Times (FT) reported that U.S. President Donald Trump has ordered a temporary halt to restrictions on technology exports to China.
Citing eight current and former U.S. officials, FT reported that the Bureau of Industry and Security (BIS) at the U.S. Department of Commerce, which oversees export controls, has in recent months received instructions to avoid taking tough measures against China. FT added that this was intended to prevent disruptions in trade negotiations with China and to facilitate a summit with Chinese President Xi Jinping later this year.
The United States and China are holding their third high-level trade talks in Stockholm, Sweden, for two days starting today. It is known that the two countries will discuss extending the "mutual reduction of ultra-high tariffs" agreement, which was previously set to apply for 90 days.
While it is reported that President Trump wants to avoid any measures that could harm his efforts to pursue a summit with President Xi, FT noted that some officials have expressed concerns about the loosening of export controls on China.
In particular, security officials are reportedly worried that the Trump administration lifted export restrictions on the H20 semiconductor developed by Nvidia just three months after they were imposed. Some experts have warned that the H20 could accelerate China's cutting-edge artificial intelligence (AI) capabilities and be used in the development of military technologies such as autonomous weapons systems and intelligence surveillance platforms.
As a result, FT reported that twenty U.S. security experts and former officials, including former White House National Security Council (NSC) Deputy National Security Advisor Matthew Pottinger, are expected to send a letter to Commerce Secretary Howard Lutnick today to express their concerns about the approval of H20 exports. The letter reportedly states that "this decision is a strategic mistake that threatens the United States' economic and military superiority in the field of AI."
Beyond the controversy over the H20, FT reported that U.S. security officials and experts are frustrated by the Trump administration's delays in taking action on China-related issues. One former official said, "Now President Trump has effectively frozen U.S. export controls and handed over the H20 semiconductor for nothing," adding, "This undermines one of the most important national security tools we have."
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