China wants US to relax AI chip-export controls for trade deal: report

Published August 10, 2025
A central processing unit (CPU) semiconductor chip is displayed among flags of China and US, in this illustration picture taken on February 17. — Reuters/File
A central processing unit (CPU) semiconductor chip is displayed among flags of China and US, in this illustration picture taken on February 17. — Reuters/File

China wants the United States to ease export controls on chips critical for artificial intelligence as part of a trade deal before a possible summit between presidents Donald Trump and Xi Jinping, the Financial Times reported on Sunday.

Chinese officials have told experts in Washington that Beijing wants the Trump administration to relax export restrictions on high-bandwidth memory (HBM) chips, the newspaper reported, citing unnamed people familiar with the matter.

The White House, State Department, and China’s foreign ministry did not immediately respond to requests for comment on the report.

HBM chips, which help perform data-intensive AI tasks quickly, are closely watched by investors due to their use alongside AI graphic processors, particularly Nvidia’s NVDA.O.

The FT said China is concerned because the US HBM controls hamper the ability of Chinese companies such as Huawei to develop their own AI chips.

Successive US administrations have curbed exports of advanced chips to China, looking to stymie Beijing’s AI and defence development.

While this has impacted US firms’ ability to fully address booming demand from China, one of the world’s largest semiconductor markets, it still remains an important revenue driver for American chipmakers.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

On press freedoms
Updated 03 May, 2026

On press freedoms

THE citizenry forgets, to its own peril, how important a free and independent media is in the preservation of their...
Inflation strain
03 May, 2026

Inflation strain

PAKISTAN’S return to double-digit inflation after 21 months signals renewed economic strain where external shocks...
Troubled waters
03 May, 2026

Troubled waters

PAKISTAN’S water crisis is often framed in terms of scarcity. Increasingly, it is also a crisis of contamination....
Iran stalemate
Updated 02 May, 2026

Iran stalemate

THE US and Iran are currently somewhere between war and peace. While a tenuous ceasefire — extended largely due to...
Tax shortfall
02 May, 2026

Tax shortfall

THE Rs684bn shortfall in tax collection during the first 10 months of the fiscal year is a continuation of a...
Teaching inclusion
02 May, 2026

Teaching inclusion

DISCRIMINATORY and exclusionary content in Punjab’s textbooks has been flagged in Inclusive Education for a United...