Trump changed Biden’s AI chip rules. What now, will it affect China trade talks?

Washington’s recent revocation of Biden-era rules governing access to artificial-intelligence chips does not mean that the US is easing its curbs on China’s technological development, according to analysts who instead see the move as a more targeted approach being taken in the race for tech supremacy.

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And they added that renewed tensions on the technology front could also add greater uncertainties to the ongoing trade talks between the world’s two largest economies, which agreed earlier this month to a rollback of large-scale tariffs for 90 days.

Compared with the “AI Diffusion Rule” that was issued in the waning days of Joe Biden’s presidency and aimed to restrict the export of US chips, new guidance from the administration of President Donald Trump prohibits the use of advanced Chinese chips.

“Trump’s approach is more tactical, using trade tools and targeted controls rather than sweeping category-wide restrictions,” said Joanne Lin, a senior fellow at ISEAS – Yusof Ishak Institute in Singapore. “For Beijing, such a curb is viewed as an existential challenge to its long-term development goals.”

The US Bureau of Industry and Security (BIS) said last week that it had rescinded the AI Diffusion Rule laid out by the Biden administration, two days before the policy was set to enter effect.

Clearly, both sides have policy priorities that collide with each other

Alfredo Montufar-Helu, The Conference Board

Instead, Washington is tailoring its attack specifically against China, by issuing advisories declaring that the use of Chinese chips is a violation of the US’ export-control rules, and restricting the use of US chips to train AI models in China – a move that sparked protest and a warning from China.

  

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