The United States government temporarily suspended new restrictions on technology exports to China in an attempt to preserve the advance of commercial negotiations with Beijing and enable a meeting between Donald Trump and Chinese President Xi Jinping later this year, according to sources heard Financial Times.
The decision takes place amid the third round of negotiations between economic authorities in both countries, with the aim of extending a tariff truce signed in May and June. China faces a deadline until August 12 to reach a lasting deal with the US, avoiding the resumption of tariffs at high levels and new embargoes.
In order not to compromise dialogue, the US Department of Commerce has instructed the Bureau of Industry and Security (Bis) to avoid harder movements against Chinese companies. Among the suspended actions is the inclusion of Chinese group subsidiaries in commercial restriction lists.
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The most visible retreat involved Nvidia (BDR: NVDA34). In April, the Trump government had signaled that it would block the export of the H20 chip, created especially for the Chinese market after restrictions imposed on more advanced models. The blockade, however, was reversed after lobby from the company’s CEO Jensen Huang.
The release of the H20 generated reactions from national security experts. In a letter to the Secretary of Commerce, Howard Lutnick, 20 former employees and analysts warned that the chip exceeds the already vetoed model H100 in “inference”, Critical stage in military applications with artificial intelligence.
“We are feeding the infrastructure that will modernize and expand the Chinese army,” says the group, coordinated by Americans for Responsible Innovation. Signatories include Matt Pottinger, former Trump national security advisor, and David Feith, who held a similar position in the current administration.
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Nvidia countered, saying that the criticism is “wrong” and incompatible with the Ia Plan released by Trump. According to the company, the H20 “does not reinforce military capabilities,” but strengthens the role of the US in the global developer community.
The government has not yet granted any export license of the H20. The Department of Commerce said it will evaluate the requests “carefully”, but did not directly comment on the suspension of restrictions.
The measure is part of a strategy to avoid further climbing in the trade war, facilitating a meeting between Trump and XI at the end of the year and ,.
