Trump officials are ramping up pressure on global allies to block China’s access to advanced semiconductor technology, continuing a strategic approach from the Biden administration but with potentially stricter enforcement.
We’re in a trade war – and it’s long overdue.
At a Glance
- The Trump administration is conducting high-level meetings with Japanese and Dutch officials to restrict China’s access to advanced chip technology
- Officials are pushing allies to prevent engineers from Tokyo Electron Ltd. and ASML Holding NV from servicing semiconductor equipment in China
- Discussions include potential new sanctions on Chinese companies and stricter restrictions on Nvidia chip exports
- US officials are investigating whether China-based DeepSeek illegally acquired Nvidia chips through third parties in Singapore
- The semiconductor export battle highlights growing concerns about China’s technological advancement in AI and computing
Escalating Technology Restrictions
The Trump administration is intensifying efforts to curtail China’s access to advanced computer chips by pushing allies to adopt similar restrictive measures.
This is a trade war for economic purposes…and military.
These efforts build upon policies established during the Biden presidency but signal an even more aggressive approach to technology containment. Trump officials have held meetings with Japanese and Dutch counterparts to prevent engineers from companies like Tokyo Electron Ltd. and ASML Holding NV from servicing semiconductor equipment in China, which would effectively cripple China’s domestic chip production capabilities.
American officials want these allies to match existing US restrictions already imposed on domestic companies like Lam Research Corp., KLA Corp., and Applied Materials Inc. The administration is also considering implementing stronger restrictions specifically on Nvidia chip exports to China. This multi-pronged strategy represents a continuity in American policy despite the change in administration, as President Biden had proposed new rules to limit chip exports to China shortly before leaving office.
National Security Concerns
The push for tighter controls stems from mounting evidence that Chinese firms have found ways to circumvent current US restrictions. Officials are particularly concerned about DeepSeek, a Chinese AI company suspected of acquiring Nvidia chips through third parties in Singapore. This case has sparked investigations and highlighted the challenges of enforcing export controls in a global supply chain. Administration officials have identified significant national security implications in allowing China to gain ground in advanced computing and artificial intelligence.
Even the Biden administration knew about this, too.
“If it’s China and not the United States determining the future of AI on the planet, I think that the stakes of that are just profound,” Jake Sullivan, former President Biden’s National Security Adviser, said.
🚨🇺🇸 TRUMP MOVES TO CHOKE CHINA’S AI CHIP SUPPLY—NVIDIA BRACES FOR IMPACT
Nvidia’s H20 chip was already downgraded to comply with U.S. trade rules, but the Trump administration is now considering banning it altogether.
Commerce Secretary nominee Howard Lutnick made it clear… https://t.co/lC2G4ztP4p pic.twitter.com/y2i4PrZ9Ja
— Mario Nawfal (@MarioNawfal) January 29, 2025
Semiconductor companies have voiced concerns that stricter restrictions could ultimately harm their global competitiveness. These companies argue that overly aggressive export controls may reduce revenue needed for research and development, potentially allowing foreign competitors to gain ground. The administration must balance these economic considerations against national security imperatives as it refines its approach to technology competition with China.
Trump officials are also reviewing an AI diffusion rule that categorizes countries into tiers with different export limitations. This tiered approach has drawn criticism from industry leaders like Nvidia, who argue for more nuanced policies. Meanwhile, some administration hawks advocate for tougher measures against Semiconductor Manufacturing International Corp. (SMIC), which serves as Huawei’s main chip supplier, representing a potential escalation in the technology containment strategy.
Despite mounting restrictions, China continues to make technological advancements. The rise of DeepSeek and other Chinese AI companies demonstrates the challenge America faces in maintaining its technological lead.
This trade war is about more than just money – it’s about our safety, AI, and the future. Scary times…
