China Pushes US to Ease AI Chip Export Controls Ahead of Potential Trump-Xi Jinping Summit

China is seeking to pressure the United States to ease export controls on crucial artificial intelligence chips as part of a potential trade deal, according to a report by the "Financial Times" on Sunday. This move comes ahead of a possible summit between former President Donald Trump and Chinese President Xi Jinping.

Citing anonymous sources familiar with the matter, the newspaper reported that Chinese officials have informed experts in Washington that Beijing wants the Trump administration to relax export restrictions on high-bandwidth memory (HBM) chips. HBM chips are vital for performing data-intensive AI tasks rapidly. They are closely watched by investors due to their use alongside AI-specific graphics processors, particularly those from Nvidia (NVDA.O).

The "Financial Times" added that China is concerned because the US controls on HBM chips are hindering the ability of Chinese companies, such as Huawei, to develop their own AI chips. Successive US administrations have restricted advanced chip exports to China in an effort to impede Beijing's progress in artificial intelligence and defense technology.

While these controls have affected the ability of American companies to meet the soaring demand from China, one of the world's largest semiconductor markets, they still represent a significant revenue driver for American chipmakers. This delicate balance between commercial interests and geopolitical maneuvering makes the issue of export controls a major point of contention between the two nations.