The Commerce Department is drafting a replacement for its recently repealed AI diffusion rule to ensure the new controls don’t impede U.S. exports to allies, Commerce Secretary Howard Lutnick said June 4.
House Select Committee on China Chairman John Moolenaar, R-Mich., said June 3 that he hopes the Trump administration will release a new AI diffusion export control rule “soon" to replace the one it recently rescinded.
Sen. Tom Cotton, R-Ark., warned Nvidia and other U.S. chip firms last week that they will face penalties if they send advanced AI chips to China.
Nvidia CEO Jensen Huang last week criticized U.S. export controls on advanced chips, saying restrictions against China have so far been a “failure.” He called on the government to allow Nvidia and other chip companies to more freely sell to China, which he said will help the U.S. economy.
Eight Senate Democrats, including Senate Banking Committee ranking member Elizabeth Warren, D-Mass., and Senate Minority Leader Chuck Schumer, D-N.Y., urged the Trump administration May 19 to reconsider its AI deals with the United Arab Emirates and Saudi Arabia, saying the agreements lack guardrails to prevent the diversion of U.S. technology to China.
Although the Bureau of Industry and Security announced last week that it won’t be enforcing the Biden-era AI diffusion rule, companies should reassess their due diligence practices to prepare for a replacement rule and make sure they’re complying with existing chip controls, law firms said, which they expect the Trump administration to aggressively enforce.
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Members of a U.S. commission on China said they approved of the Trump administration’s AI chip agreement with the United Arab Emirates last week, but they also stressed that the deal should have stringent security guardrails in place to verify that any U.S. chips aren’t being sent on to Beijing.
The Trump administration should make sure its replacement to the Biden-era AI diffusion rule (see 2505130018) allows U.S. companies to compete fairly with foreign firms, industry officials said at the Federal Communications Bar Association annual seminar last week.
The Bureau of Industry and Security quietly revised its announcement of new guidance on Huawei Ascend chips to remove language that said using those chips “anywhere in the world” is a violation of U.S. export controls.