The U.S. should impose new export controls on the subsystems of semiconductor manufacturing equipment and double down on enforcement for exports of advanced AI chips, including by potentially mandating that chip exporters use location-tracking features, the White House said in its new AI action plan. While the plan calls for tighter controls against China and other “strategic adversaries,” it also said the U.S. should strike deals with other countries to export American AI systems around the world.
The Senate Banking Committee voted 13-11 along party lines July 23 to approve David Peters' nomination as assistant secretary of commerce for export enforcement.
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House Select Committee on China Chairman John Moolenaar, R-Mich., said July 22 that the U.S. needs to impose stronger export controls and outbound investment restrictions on China to protect its own national security.
Treasury Secretary Scott Bessent suggested the White House may be in favor of a bill that would authorize new sanctions and tariffs against Russia’s supporters, and he urged the EU to put in place similar measures.
Beijing last week said it’s seeing the U.S. approve exports of Nvidia H20 chips to China and urged the Trump administration to roll back other restrictions against the country.
House Select Committee on China Chairman John Moolenaar, R-Mich., asked the Commerce Department July 18 to explain how it plans to implement the Trump administration’s recent decision to allow U.S. semiconductor firm Nvidia to sell its previously restricted advanced H20 chips to China (see 2507150013).
More than six months into President Donald Trump’s second term, the new administration’s plan for export controls on both semiconductors and chip manufacturing equipment remains unclear, industry officials and a congressional adviser said last week. They all said they hope any new controls are calibrated with allies.
A bill to mandate location-tracking mechanisms for exports of advanced chips was panned this week by technology policy experts who said the requirement would be tricky to implement and could push foreign customers to stop trusting American-made semiconductors. They also said Congress should be more focused on boosting the Bureau of Industry and Security budget to help the agency step up enforcement.
The Trump administration’s decision to approve exports of advanced Nvidia chips to China could backfire on the U.S. the next time it tries to convince allies to restrict their advanced technology shipments to China, Divyansh Kaushik of Beacon Global Strategies said.