admin Commerce Department shifts strategy to target Huawei and high-end semiconductor exports
The escalating tech tensions between the United States and China have entered a new phase, with Washington redirecting its restrictions to more directly confront China’s advancements in artificial intelligence. At the core of the renewed scrutiny is Huawei, the Chinese technology giant whose powerful Ascend chips have drawn concern from US regulators.
On May 12, the US Commerce Department revealed it would roll back the “AI Diffusion Rule,” a regulation initially introduced under the Biden administration. The rule, which was scheduled to take effect on May 15, aimed to control the export of advanced AI chips through a three-tier system—permitting access to trusted countries while limiting exports to nations like China.
US officials indicated that maintaining the rule could harm domestic innovation and strain ties with allied nations. Instead, the revised policy will directly address the use of Huawei’s semiconductors and tighten oversight on the deployment of American-made AI chips in training Chinese models, warning companies of potential consequences for non-compliance.
Analysts have observed that this approach signals a shift away from a multilateral framework toward a more focused, unilateral strategy that places emphasis on curbing China’s technological rise.
China Accelerates AI Push Despite Export Controls
Despite intensifying restrictions, China continues to pursue its AI ambitions with increased investment and homegrown innovation. Chinese startup DeepSeek has recently made headlines with an AI chatbot reportedly capable of matching US alternatives at significantly lower costs. Major firms such as Alibaba and Xiaomi have announced large-scale investments aimed at strengthening the country’s AI infrastructure and reducing reliance on foreign suppliers.
These developments are unfolding against the backdrop of a tentative trade thaw between the two superpowers. Earlier this month, both sides agreed to temporarily reduce tariffs for 90 days, suggesting a brief diplomatic reprieve. However, experts argue that while trade barriers may ease temporarily, technology restrictions are becoming embedded in national security policies.
Analysts suggest that unless the US alters its stance on blacklisting Chinese AI firms, Beijing is unlikely to yield on broader technological or geopolitical issues. The AI race, they warn, is quickly becoming a long-term fixture in US-China relations.
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