The draft rules were seen as a part of the broader US campaign to restrict China’s access to cutting-edge semiconductor technology while preserving US leadership in AI.
The US government has withdrawn a draft rule that would have tightened its control on the export of advanced artificial intelligence (AI) chips. The move marks a step back from an earlier proposal that sought to require the government’s approval for the export of high-end processors.
Earlier, on February 26, a notice was published by the government’s commerce department regarding the implementation of rules. However, now it has been pulled back. Citing a US official, Reuters reported that the measure had only been a draft and that discussions surrounding it were preliminary.
The planned regulation was seen as the biggest attempt by US President Donald Trump to outline a strategy governing the export of advanced AI processors. Earlier, Trump had discarded the regulatory framework put in place by former President Joe Biden.
According to details previously reported by Bloomberg, the proposal would have given the Commerce Department’s licensing office a major role in reviewing exports of advanced AI chips produced by companies such as Nvidia. Approval for exports was to be given by the government on a case-by-case basis.
One point of the draft also proposed to link chip exports to commitments by foreign governments. Countries seeking more than 2,00,000 AI chips could have been required to invest in the US, while requests for up to 1,00,000 chips would have required formal government guarantees.
During the Biden administration, the approach was to divide countries into three groups: close allies that could obtain chips freely, most other nations subject to caps, and ‘countries of concern’ effectively barred from purchasing the advanced processors. That strategy was a part of the broader US campaign to restrict China’s access to cutting-edge semiconductor technology while preserving US leadership in AI.
According to the reports, Officials have indicated that the Trump administration does not plan to revive the previous framework, describing it as overly complex. The Commerce Department has highlighted that it remains focused on ensuring secure exports of American technology while supporting the country’s push for global AI leadership.
The withdrawal of the draft rule also reflects internal debate within the Trump administration over how to balance national security concerns with efforts to expand the global reach of US AI technology.
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