The U.S. government had already tightened restrictions on high-tech exports to China before Trump's arrival

In January 2025, the U.S. government significantly tightened restrictions on the export of semiconductors and artificial intelligence technologies to China, with a particular focus on NVIDIA chips and automotive software. The new regulations, introduced by the Biden administration, aim to limit China’s access to advanced technologies while maintaining the United States’ leadership in the global high-tech sector.

The new regulations build on export restrictions introduced in August 2022, which had already blocked the shipment of NVIDIA chips worth $400 million. The 2025 measures are even stricter, banning the export of NVIDIA A800 and H800 chips and extending restrictions to automotive software. According to the U.S. Department of Commerce, the goal of the new regulations is to minimise national security risks while preserving the competitiveness of the American technology sector.

As a result of the measures, NVIDIA's shares fell by 8% in the first week of January 2025. The long-term impact of the restrictions is already being felt: U.S. semiconductor exports to China dropped by 25% in the last quarter of 2024. The new regulations particularly affect the automotive sector, where the use of Chinese and Russian-origin software has been completely banned. According to experts, this package of measures represents the most comprehensive technological export restriction of the past decade.

Sources:

1.

The new AI diffusion export control rule will undermine US AI leadership

John Villasenor examines how the new AI diffusion export control rule could backfire, stifling innovation and U.S. global leadership.

BrookingsSee More

2.

Understanding the Biden Administration’s Updated Export Controls

Gregory C. Allen reviews the Biden administration’s December 2, 2024, updates to AI and semiconductor export controls, spotlighting eight pivotal actions and their potential effects on U.S. strategic objectives.

Center for Strategic and International Studies

3.

U.S. officials order Nvidia to halt sales of top AI chips to China U.S. officials have told Nvidia to stop exporting two top computing chips for artificial intelligence work to China, a move that could cripple Chinese firms' ability to carry out advanced work like image recognition.