President Trump’s administration has taken a hardline approach regarding Chinese tech advancements. Recently, it warned companies that using AI chips made by Huawei could lead to serious legal consequences within the U.S. This moves aims to enforce existing export controls on sensitive technologies.
The U.S. Commerce Department clarified that Huawei’s Ascend processors fall under export regulations because they likely contain U.S. technology. The Bureau of Industry and Security (BIS) announced stricter guidance on foreign AI chips. Experts, including Kevin Wolf, a specialized export control lawyer, emphasized that this guidance is an important confirmation. Even using Huawei’s advanced chips anywhere could violate U.S. export rules.
Specifically, Huawei’s Ascend chips—910B, 910C, and 910D—are highlighted in this guidance. These chips are believed to be designed using U.S. software and technology, which complicates their use.
The U.S. government’s concerns have intensified since Huawei has rapidly advanced its chip technology. They claim that their AI chip clusters can outperform Nvidia’s products on key performance metrics. Though individual chips might not match Nvidia’s cutting-edge offerings, collectively, they deliver remarkable performance.
Huawei is currently supplying these processors primarily to Chinese companies and aims to ramp up production by establishing its own semiconductor manufacturing facilities. This push may allow them to compete not just domestically, but also in international markets.
Concerns grow as experts believe that Huawei could soon be providing AI processors that rival those from Nvidia and other U.S. firms. Nvidia’s CEO Jensen Huang noted that Huawei is a significant force in technology, and U.S. policies should aim to keep up with this competition.
In a noteworthy policy shift, the Commerce Department also canceled the planned AI Diffusion Rule, which intended to restrict U.S. exports of AI chips to help curb China’s advancements. Critics argued that this decision could create gaps in protective measures but it reflects a desire to simplify the rules rather than complicate them with bureaucracy.
During the same period the guidance was released, Trump visited Saudi Arabia to announce deals involving AI infrastructure that will utilize Nvidia chips. However, concerns arose regarding the implications of these deals, particularly regarding collaborations between Saudi Arabia, the UAE, and China.
The situation continues to evolve, and it reflects a broader struggle between innovation and regulation in global technology markets.
For more information on U.S.-China technology relations, see the U.S. Commerce Department’s official guidelines.