Trump temporarily drops export controls to smooth negotiations with China

The Trump administration has reportedly backtracked on its plan to block exports of key AI chips to China. Instead, the US will temporarily block restrictions on exports of chips and other technology to China. The goal is to facilitate a meeting between Trump and Chinese President Xi Jinping to strike a trade deal. The US Commerce Department was told to avoid taking tough measures on China, according to eight people familiar with the matter. Trump wanted to avoid angering Xi, fearing China would retaliate by restricting exports of rare earths and magnets. NVIDIA recently announced it would resume selling key AI chips to China after being blocked earlier. The news of frozen export controls supports NVIDIA's statement. However, 20 security experts and former US officials, including from Trump's previous administration, wrote to the Commerce Department opposing the decision. They argue that providing China with advanced AI chips endangers the US' economic and military edge in artificial intelligence. The letter states that supplying China with these chips will fuel the modernization and expansion of the Chinese military. The move is seen as a strategic misstep by these experts.