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Trump Administration Scraps Biden-Era Chip Export Rule, Eyes New Global Strategy
2 min read The Trump admin just killed a global chip export rule, shifting to country-by-country deals while tightening restrictions on China and Huawei. It’s a win for Big Tech—but could turn AI access into a geopolitical bargaining chip. May 14, 2025 12:25
In a major reversal, the Trump administration has canceled a sweeping Biden-era rule that would’ve tightened global semiconductor export controls. Instead, it’s shifting toward a country-by-country strategy—while keeping a hard line on China.
The Details:
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Last-Minute Cancellation: The Commerce Department scrapped the rule just days before it was set to take effect, warning it could stifle innovation and damage diplomatic ties.
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Huawei Crackdown Widens: New guidance now labels the use of Huawei’s Ascend AI chips anywhere in the world as a violation of U.S. export controls.
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New Strategy Incoming: Bloomberg reports the administration is working on replacement policies—likely built on bilateral agreements rather than blanket rules.
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Middle East Momentum: The announcement coincides with President Trump’s meeting with top tech leaders in the Middle East, where the UAE has pledged new partnerships and major AI investments.
Why It Matters:
This pivot signals a deeper alignment between the Trump administration and the tech industry’s most powerful players—many of whom pushed for this rollback.
While the new approach could unlock commercial opportunities and investment deals, it also opens the door to a fragmented AI ecosystem—where access to chips and compute power may hinge on geopolitics, not just tech capabilities.
The AI race just became more political.
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