China is urging the United States to relax export restrictions on critical chips used for artificial intelligence as part of a trade agreement before a potential summit between Presidents Donald Trump and Xi Jinping, according to a report by the Financial Times. Chinese officials have reportedly conveyed to experts in Washington their desire for the Trump administration to ease limits on high-bandwidth memory (HBM) chips, which play a vital role in AI processing.
HBM chips are essential for performing data-intensive AI tasks quickly and are closely monitored by investors due to their use alongside AI graphic processors, such as those produced by Nvidia. The Financial Times noted that China’s concern arises because current U.S. controls on HBM chips hinder companies like Huawei from developing their own advanced AI chips, affecting their technological progress in this critical area.
Over recent years, multiple U.S. administrations have imposed export restrictions on advanced chip technologies to China, aiming to curb Beijing’s advancements in artificial intelligence and defense capabilities. These controls have limited Chinese companies’ access to cutting-edge semiconductor components needed for AI innovation and national security enhancement.
Despite these controls, China remains one of the largest and fastest-growing markets for American semiconductor firms. The restrictions have complicated U.S. companies’ efforts to meet China’s booming demand for chips, yet the Chinese market continues to be a significant source of revenue for U.S. chipmakers. The potential easing of export rules could have major implications for trade and technology relations between the two countries.