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Investing.com -- The U.S. has paused restrictions on tech exports to China in an effort to avoid hindering ongoing trade negotiations with Beijing and to support President Donald Trump’s efforts to secure a meeting with President Xi Jinping this year, the Financial Times reported on Monday.
Sources familiar with the matter, including current and former officials, told the newspaper that the Commerce Department’s industry and security bureau, responsible for export controls, has been instructed in recent months to refrain from taking strong actions against China.
Senior economic officials from both the U.S. and China are scheduled to meet in Stockholm on Monday to continue talks on long-standing economic issues that have fueled the ongoing trade war between the two largest economies.
Nvidia (NASDAQ:NVDA), the tech giant, announced this month that it would resume the sale of its H20 graphics processing units (GPUs) to China, reversing a previous export restriction imposed by the Trump administration in April.
The earlier ban aimed to prevent the flow of advanced AI chips to China due to national security concerns.
The planned resumption is part of broader U.S. negotiations regarding rare earth elements and magnets, according to Commerce Secretary Howard Lutnick.
However, 20 security experts and former officials, including former Deputy National Security Adviser Matt Pottinger, are set to send a letter to Lutnick on Monday expressing concerns about the move.
"This move represents a strategic misstep that endangers the United States’ economic and military edge in artificial intelligence," the letter states, according to the Financial Times report.