Washington D.C. – July 28, 2025 –
The Trump administration has reportedly moved to ease certain restrictions on technological exports to China, a strategic manoeuvre aimed at bolstering ongoing trade negotiations and potentially paving the way for a high-level summit between President Donald Trump and Chinese President Xi Jinping later this year.
The policy shift, while not a wholesale reversal of the broader strategy to limit China’s access to cutting-edge technology, signifies a tactical concession in the heated trade discussions. Reports indicate that the U.S. Commerce Department’s industry and security bureau, which oversees export controls, has been instructed in recent months to avoid imposing tough new measures on China.
One notable example of this loosened approach is the reported decision to allow Nvidia to resume sales of its H20 graphics processing units (GPUs) to China. This reversal comes after the Trump administration had previously blocked the export of these advanced AI chips in April over national security concerns. The resumption of these sales is understood to be part of a broader framework agreement reached during earlier U.S.-China talks in Geneva and London.
Commerce Secretary Howard Lutnick has publicly indicated that the loosening of restrictions on chips like the H20 is “all part of a mosaic” in the negotiations with Beijing. This suggests that tech export controls, previously considered almost non-negotiable on national security grounds, are now being utilised as bargaining chips in the pursuit of a comprehensive trade deal.
Analysts suggest that China, in return for these concessions, is expected to ease its own restrictions, particularly on the export of rare earth minerals and magnets, which are critical for various U.S. industries. This reciprocal easing forms a key component of the ongoing discussions.
However, the move has not been without its critics. Concerns have been raised by some security experts and former officials who argue that providing China with access to advanced AI chips, even of a slightly less powerful variant like the H20, could inadvertently support China’s military development. A group of 20 security experts and former officials are reportedly set to write to Secretary Lutnick today to voice their concerns.
Despite this shift, the underlying strategic competition in technology between the U.S. and China remains intense. The Trump administration’s recently released “Winning the AI Race: America’s AI Action Plan” outlines aggressive deregulation and infrastructure development aimed at positioning the U.S. as an “AI export powerhouse” to allies, while still maintaining mechanisms to monitor and control the flow of sensitive technology to “countries of concern” like China.
The current round of U.S.-China trade talks in Stockholm, led by U.S. Treasury Secretary Scott Bessent and his Chinese counterparts, is expected to further explore the parameters of this new approach. While the immediate goal is to extend a crucial 90-day pause on reciprocal tariffs, the willingness to adjust tech export policy indicates a desire to create a more conducive environment for a larger, more comprehensive trade agreement in the coming months.
