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Investing.com-- U.S. President Donald Trump’s administration is considering tightening Biden-era chip export controls on China to limit the country’s artificial intelligence capabilities, Bloomberg reported on Tuesday.
U.S. officials recently met with their Japanese and Dutch counterparts to discuss more restrictions on maintaining chipmaking operations in China, especially for companies such as Tokyo Electron Ltd. (TYO:8035) and ASML Holding NV (AS:ASML), the Bloomberg report said. The end goal of the discussions, like Biden, is to restrict China’s access to advanced chipmaking technology.
Trump’s team is also considering more curbs on Nvidia’s sales to China, as well as tighter sanctions against Chinese tech firms.
The U.S. is also looking to have its allies match chip export restrictions on China.
The Bloomberg report comes just days after Trump signed a sweeping executive order seeking further curtailment in Chinese investment and the country’s access to chipmaking technology. Beijing balked at the move, which threatens to further sour relations between the world’s biggest economies.
The Bloomberg report also shows that Trump is largely seeking to maintain a hawkish stance against China, particularly in extending Biden’s bid to limit the country’s access to advances in AI.
China’s AI capabilities came into renewed focus this year, after the release of DeepSeek- a Chinese AI model that appeared to match the performance of rival offerings, such as OpenAI’s ChatGPT, while using older hardware and a fraction of the latter’s budget.
DeepSeek indicated that China was still in the AI race, with a lack of access to advanced chips forcing local companies to focus more on efficiency over scaling up their AI models.
But increased export controls on China could dent sales of major U.S. chipmakers. Majors including NVIDIA Corporation (NASDAQ:NVDA) and TSMC (NYSE:TSM) have warned of such a scenario.
Still, demand for Nvidia’s H20 chips- which are made in line with U.S. export controls- rose sharply in China amid increasing optimism over DeepSeek, a Reuters report showed earlier on Tuesday.