In separate letters to the Trump administration, more than 20 former national security officials along with five Senate Democrats urged the Commerce Department to reverse its decision to approve exports of Nvidia’s advanced AI chips to China.
The U.S. and the EU reached a trade deal this week that will include a 15% U.S. tariff on most EU exports and will eliminate duties on both sides for other items, including aircraft parts and certain semiconductor equipment, agricultural products and more. The EU also will buy advanced American AI chips along with more American energy as part of the bloc’s effort to phase out purchases from Russia, European Commission President Ursula von der Leyen said.
At least $1 billion worth of Nvidia advanced AI chips were smuggled into China about a month after the Trump administration placed new export controls on the company's less advanced chips, the Financial Times reported July 24. Multiple Chinese distributors in May began selling Nvidia's B200 chips to suppliers of data centers that serve Chinese AI groups, the report said, adding that those chips are more advanced than Nvidia's H20s, which the Trump administration restricted in April (see 2504160026). Contracts reviewed by the Financial Times for sales during that time period showed shipments "estimated to be more than" $1 billion.
The Trump administration is launching a new program to increase U.S. exports of AI technologies and services as part of an effort to spread the adoption of American AI systems around the world.
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.
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The Senate Appropriations Committee’s newly released report on the FY 2026 Commerce-Justice-Science appropriations bill (see 2507170053 and 2507100053) calls for the Bureau of Industry and Security to take several actions to inform lawmakers, including writing a report on international efforts to harmonize export controls on items that could aid Russia’s invasion of Ukraine.
The Trump administration will allow semiconductor firm Nvidia to sell its previously restricted advanced H20 chips to China as part of an agreement Washington and Beijing reached during trade talks in recent months, Treasury Secretary Scott Bessent said.
The Bureau of Industry and Security has completed an interagency review of its rule that will formally rescind the Biden-era AI diffusion rule (see 2505070039). The agency sent the final rule for interagency review May 7 (see 2505080026), and it was completed July 10.
The U.S. government, together with industry, needs to set clearer guardrails around sensitive technology shipments destined to China, two panelists said during an event on export controls last week. Another panelist questioned whether the Trump administration is willing to set tougher rules, saying Beijing appears to have recently gained extra leverage and adding that the U.S. has for years failed to deter companies from flouting restrictions against China.