Trump altered Biden's AI chip regulations. What happens now, and how will it effect China's trade talks?

[WORLD] Washington’s recent decision to rescind certain Biden-era regulations on access to artificial intelligence chips does not signal a relaxation of U.S. restrictions on China’s tech ambitions, according to analysts. Instead, they interpret the move as a shift toward a more strategic and focused approach in the ongoing competition for technological dominance. This policy adjustment is part of a broader trend in U.S. strategy, where sweeping controls are giving way to more precise, sector-specific measures targeting key technologies and industries.

Experts also warn that this renewed focus on tech-related tensions could further complicate the delicate trade negotiations between the world’s two largest economies. Earlier this month, both sides agreed to a 90-day suspension of major tariffs, but the long-standing friction over technological advancement—especially in artificial intelligence and semiconductors—remains a flashpoint. Both Washington and Beijing consider these technologies vital to their national security and economic futures, and recent U.S. moves are widely seen as efforts to safeguard its strategic advantage.

In contrast to the so-called “AI Diffusion Rule” introduced during the final phase of Joe Biden’s presidency, which sought to curb U.S. chip exports, new directives under President Donald Trump’s administration ban the use of advanced Chinese chips. Industry reaction has been mixed. Some experts argue the move could stifle innovation by hindering cross-border collaboration, while others contend it is a necessary step to defend U.S. intellectual property and security interests.

The ramifications of this evolving policy reach well beyond the tech sector. Analysts believe the shift toward targeted restrictions may lead to a more fragmented global technology landscape, prompting nations and corporations to build more self-reliant supply chains. This could reshape international trade dynamics and influence long-term economic cooperation.

The semiconductor industry, which has experienced significant growth in China, is expected to feel the brunt of the new rules. While the restrictions may hamper China’s momentum in chip development, they could also spur domestic innovation as Chinese firms seek to reduce their dependence on U.S. technology.