China Demands the US to Lift Export Controls on Chips

• China demands the lifting of export restrictions on HBM chips.
• Trade negotiations are ongoing ahead of a meeting between US and Chinese leaders.
• The US is restricting chip exports to curb China's technological development.

This is reported by RBC Ukraine, Asharq Al-Awsat.

China is urging the United States to lift export restrictions on high-bandwidth memory (HBM), which are key components for the production of artificial intelligence chips. This issue has become central in trade negotiations ahead of a possible summit between Presidents Donald Trump and Xi Jinping.

According to information from Financial Times, a Chinese delegation led by Vice Premier He Lifeng held three rounds of negotiations with US Treasury Secretary Scott Altman. Chinese representatives repeatedly emphasized the importance of lifting export restrictions on HBM.

The final term of the trade agreement between the US and China is set to be concluded on September 12. US Secretary of Commerce Gina Raimondo indicated that the Trump administration is likely to continue the moratorium on tariffs for another 90 days.

Since 2022, the Biden administration has imposed stringent measures aimed at limiting China's capabilities in manufacturing and acquiring advanced chips for artificial intelligence. Notably, the ban on HBM exports was introduced in 2024 to limit Huawei and SMIC, the largest Chinese companies in this sector.

China's Demands

Recently, the US granted export licenses for the H20 chip, developed by Nvidia specifically for the Chinese market. However, China is increasingly concerned about the control over HBM, as this significantly restricts the development of its own chips for artificial intelligence.

According to sources, the Biden administration recognizes that the export control over HBM is the most effective measure for mass production of artificial intelligence chips in China. Furthermore, China utilizes HBM for packaging logic components of chips obtained from Taiwanese TSMC, which may violate American legislation.

China's position in the US has labeled the export control "malicious," violating the rights of Chinese companies.

Strengthening Control

Currently, in Washington, there is an increasing demand for the Trump administration to strengthen control as it may ease restrictions under the trade agreement, which has drawn criticism regarding Nvidia, which sells gaming chips used for AI in China. Some Chinese companies are advertising Nvidia’s gaming chips 4090D and 5090D for AI applications.

Despite this, Nvidia asserts that its gaming products are not intended for AI and are sold in compliance with American legislation. The head of the House Committee on Foreign Affairs, John Moolenaar, has indicated that the Ministry of Commerce plans to tighten export control through mass-scale restrictions on advanced AI chips.

Tariffs on Electronics Imports to the US

At the beginning of April, Trump imposed tariffs on imports of goods worth more than $180 billion. Tariffs were introduced on imports to the US of computers, chips, and semiconductors. As a result, due to such tariffs, the price of the iPhone may rise by 30-40%, as Apple purchases components and manufactures products in China, Taiwan, and other Asian countries.

In response, Trump stated that iPhone manufacturing could be relocated to the US. Previously, the president indicated tariffs on imports of smartphones and computers, but the administration has delayed plans to introduce new tariffs on critically important technological products from China for two months. On September 7, President Donald Trump announced plans to impose 100% tariffs on all microchips and semiconductors imported to the US from other countries.

Tags: USA/China/Politics/Technology