In a key move that could reshape U.S.-China trade dynamics, the U.S. government has reportedly paused its strict export controls on advanced technology going to China. This decision, as per the Financial Times, is aimed at supporting ongoing trade talks with Beijing and helping former U.S. President Donald Trump secure a high-level meeting with Chinese President Xi Jinping later this year.
The US Commerce Department’s Bureau of Industry and Security, which handles export permits, has been told not to take any tough action against China for the past few months. This pause comes as top level talks between US and Chinese officials are set to resume in Stockholm to ease economic tensions between the world’s two largest economies.
This policy shift may also help companies like Nvidia which has announced that it will start selling its H20 graphics processing units (GPUs) in China again. These high end chips were previously restricted due to national security concerns and are critical for AI development.
According to Commerce Secretary Howard Lutnick, the relaxation in export control is part of broader trade talks which now also include sensitive items like rare earth materials and industrial magnets. But this has raised security concerns in the US. A group of 20 former officials and AI experts including ex-national security adviser Matt Pottinger are set to write an open letter opposing this policy shift saying it will harm America’s lead in AI technologies.
For Indian stock market followers this may impact Indian IT and semiconductor companies which have trade ties with both US and China. It also shows how geopolitical decisions can directly impact global chip supply, trade relations and investment trends in technology.
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Source: Moneycontrol
News Desk
