Inside the New Trade Talks of U.S.-China Chip Export Controls in 2025

Have you ever tried to build a rocket without having access to rocket fuel? This is a great challenge to everyone who has tried to do so, and that is similar to what China is facing now in the race to artificial intelligence. The two big giants in technology have had tensions in the past as well, and we are familiar with the rivalry between U.S.-China chip export controls. China and the United States have put a lot of restrictions on expanding their home-founded companies to expand into the rival’s territory. But recently, the tensions between these two countries have simmered, and China is looking for the United States to loosen restrictions.

Recent news on geopolitics has shown that there is a high possibility of a meeting between Donald Trump and Xi Jinping, and the request to loosen restrictions could become a topic of discussion. This would be a huge opportunity for Chinese companies to expand globally and mainly to the United States. This will also open opportunities for other companies in China and the United States to expand globally and gain more traffic or audience. The meeting between the two Presidents is brewing, and the request to loosen restrictions could become a make-or-break bargaining chip!!

So, let’s take an in-depth look at how these countries have handled expansion restrictions and what it would mean for them if the U.S.-China chip export controls are loosened. Questions like whether China will overtake the United States in the race for artificial intelligence have also been raised.

China’s Request to Loosen HBM Controls

Reports have been all over the news channels that China is making a clear agreement with the United States about trading and loosening restrictions. These chips are essential to handle heavy artificial intelligence workload and have now become a cornerstone of modern artificial intelligence systems. According to several other news reports, Chinese officials have approached several experts in Washington to express their demand ahead of the meeting between Trump and Xi Jinping. Their demand is straightforward, and they want the current U.S.-China chip export controls to be lifted.

The concerns of Chinese officials are valid, as the current restrictions on HBM technology have significantly hindered Chinese companies like Huawei from developing and expanding globally. HBM chips have been praised a lot of times because of how perfectly they pair with artificial intelligence graphics processors. The leader in the market of chipmaking is NVIDIA, and HBM technology has partnered to speed up data-intensive AI computations. China’s artificial intelligence ambitions will face a huge setback without the restrictions being lifted!

According to us, U.S.-China chip export controls are less about the type of chip and more to do with technological sovereignty. Artificial intelligence leadership is a strategic priority for China, and they are dependent on foreign suppliers, especially those that are under export controls.

Impact of U.S.-China Chip Export Controls

The U.S.-China chip export controls are tightened on very advanced chips, and these measures are aimed at slowing China’s progress in artificial intelligence. The controls are particularly aimed towards companies like Huawei that have built their own artificial intelligence chips but rely heavily on HBM technology. Huawei cannot function well without having access to the latest HBM technology. Without the HBM technology, Huawei is forced to accept lower-performance products or develop other alternatives that are costly and expensive.

The main concern of China is that without the U.S.-China chip export controls being lifted or loosened, the artificial intelligence development will lag behind. In the field of artificial intelligence, performance is exponential, and small delays can have a severe and huge impact on the competition and put China behind in the race. According to us, the U.S.-China chip export controls are probably a double-edged sword, and the restrictions slow down China’s AI momentum. But it is also important to incentivize Chinese firms to innovate domestically and accelerate self-reliance.

The Geopolitical Context

If we look at the timing of the request, we shall notice that it is no accident. President Donald Trump will probably have a meeting with Xi Jinping, and Beijing is positioning the U.S.-China chip export controls as a key negotiation point. The trade talks between the two tech giant countries have revolved around tariffs, market access, and intellectual property in the past. But this time, the focus of the negotiation between the United States and China will revolve around the U.S.-China chip export controls and technology. AI is not just an economic opportunity but also a national security concern, and both countries understand that.

The United States sees China as a potential competitor and hence wants to keep the U.S.-China chip export controls there to prevent them from winning the race in artificial intelligence. China is also not giving up and pushing to include HBM access in a trade deal, and suggesting that the view is very important for them. The move signals that Chinese officials want to close the U.S.-China chip export controls gap as quickly as possible before the United States advances in technology.