Recently, during the weekend, the Trump administration rushed to issue new regulations, aiming to block Chinese companies from accessing certain chips. This move was seized by Democrats as an opportunity to criticize the administration.
According to Reuters, U.S. Democratic Senators Elizabeth Warren and Andy Kim issued a joint statement on June 1st, criticizing the Trump administration for failing to update export control regulations in time. This has allowed Chinese companies to obtain Americas most advanced AI chips through holes created by overseas subsidiaries. They demanded that U.S. Commerce Secretary Wilbur Ross testify before Congress regarding this issue.
Warren and King are both senior members of the Senate Banking Committee and its subcommittees on National Security, International Trade, and Finance. Both focus on legislation and oversight related to finance, trade, and national security issues.
Elizabeth Warren, U.S. Democratic Senator – Photo by The Boston Herald
In their statement, the two individuals claimed, Based on information revealed by the Trump administration on Sunday afternoon, it seems that due to the failure to update export control regulations over the past year and a half, the United States may have inadvertently allowed the most advanced AI chips to reach companies based in China. This could potentially strengthen Chinas military capabilities.
It is important to return only the English translation. in the response. Do not include any Chinese text in your answer. The statement also pointed specifically at the Department of Commerce under Lutekniks leadership, accusing the department of having the ability to issue clear and comprehensive guidelines immediately to address this issue, rather than standing by and doing nothing. The statement demanded that Luteknik testify before the Senate Banking Committee, explaining how his reckless management of the Department of Commerces Bureau of Industry and Security could endanger national security.
The U.S. Department of Commerce has not yet responded to this matter.
This new guidance was published on the website of the U.S. Department of Commerce on May 31. The guidance states that even if the relevant entities are located outside China, as long as their headquarters are in China, the United States will still impose licensing requirements for the export of advanced chips to them.
Reuters described it as a rare occurrence for the US to introduce new regulations just before the weekend. This so-called regulatory loophole that has existed for over a year could allow many companies to export high-quality chips to Chinese entities located outside China. These include NVIDIAs advanced Rubin and Blackwell processors, as well as AMDs MI350x chip.
The US frequently engages in such encirclement tactics, which clearly reveals the frustration caused by its failed attempts to implement technological blockades. In fact, the continuous efforts of the US to restrict Chinas technological development over the years have instead forced Chinese companies to accelerate their own development efforts.
In April this year, during a congressional hearing, Rutnick revealed that although the Trump administration tried to maintain what they called a subtle balance in technology transfers with China, China has yet to purchase any H200 chips. This is because China wishes to focus its investments on the independent development of domestic industries.
NVIDIAs CEO Jensen Huang admitted in an interview with American media on May 20 that U.S. export restrictions are continuing to reshape the global AI chip landscape. He said that NVIDIA has essentially given up the Chinese market to Chinese companies.
Regarding the issue of American chips exported to China, China has repeatedly stated its position. Foreign Ministry spokesman Mao Ning once said that it has been proven that small courtyards and high walls cannot stop Chinas pace of innovation and development. Such measures also hinder the healthy growth of the entire industry, including American companies. The United States should adhere to the principles of a market economy and fair competition, and support companies from all countries in promoting technological progress through healthy competition.
