China wants US to relax AI chip-export controls for trade deal, FT reports - Reuters

Chips & Policy

China Asks US to Ease AI Chip Export Controls in Trade Talks

China has asked the US to relax AI chip export controls as part of a trade deal, the Financial Times reports, citing people familiar with the matter. Neither government has confirmed the request.

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Grace Kim
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China has asked the United States to relax export controls on artificial intelligence chips as part of a trade deal between the two countries, the Financial Times reported, citing people familiar with the discussions.

The request places semiconductor policy at the center of the trade negotiations. Washington has used export controls since 2022 to restrict China's access to advanced AI chips and the tools needed to build them. Beijing now wants those restrictions loosened in exchange for trade concessions.

Reuters relayed the Financial Times report. Neither publication named the specific chips, manufacturers, or chip categories covered by the Chinese request.

What does China want changed?

According to the report, Beijing wants the US to ease limits on AI chip exports. The controls currently block or limit sales of high-end processors used for training and running AI models. US chipmakers have lost a major revenue stream as a result.

The Financial Times did not specify whether the Chinese request covers:

  • Sales of individual AI processors to Chinese buyers
  • Licenses for specific Chinese companies
  • Broader restrictions on chipmaking tools and equipment
  • Rules affecting subsidiaries and foreign-made products

The report also did not state which US officials received the request or how Washington responded.

Why do export controls shape the trade talks?

The US has treated advanced semiconductors as a national security matter. Officials argue that AI chips can strengthen China's military and surveillance capabilities. China views the controls as an attempt to hold back its technology sector.

That dispute now sits inside a wider trade negotiation. China is offering to discuss a deal, and it has named chip controls as a condition. The Financial Times report signals that export policy has become a bargaining chip rather than a standalone measure.

For US chipmakers, the stakes are commercial as well as geopolitical. China has been one of the largest markets for semiconductors. Export controls have cut off sales that manufacturers had counted on.

How firm is the reporting?

The claim rests on anonymous sources. The Financial Times cited people familiar with the matter. Reuters passed the report along without independent confirmation. No US or Chinese agency has commented publicly on the specific request.

There is no confirmed figure in the report for:

  • The value of chip sales at stake
  • A timeline for any agreement
  • Which product lines or process nodes would gain access

Any numbers circulating in analyst notes remain estimates. Nothing in the reporting indicates the US is prepared to make concessions.

What comes next?

Negotiators from both countries continue to discuss trade terms. The Financial Times report suggests chip export controls are now part of that agenda, but no deal has been reached and no policy change has been announced. The outcome will determine whether American AI chip suppliers regain access to Chinese customers or face the restrictions indefinitely.

Source: Google News: chip export controls

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Grace Kim

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Market editor covering people, launches and day-to-day practice in Semiconductors, chip manufacturing, hardware, AI compute at Chip Dispatch.

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