Trump’s AI Action Plan aims to block chip exports to China but lacks key details
The Trump administration is navigating a complex path to establish the United States as a global leader in AI technology while simultaneously preventing its advanced capabilities from bolstering foreign adversaries. This delicate balance is at the heart of the recently released AI Action Plan, which aims to secure America’s AI prowess while implementing robust protective measures.
The “America’s AI Action Plan,” unveiled on Wednesday, emphasizes the nation’s current dominance in data center construction, computing hardware performance, and AI models. The document clearly states, “America currently is the global leader on data center construction, computing hardware performance, and models. It is imperative that the United States leverage this advantage into an enduring global alliance, while preventing our adversaries from free-riding on our innovation and investment.”
A significant focus of the plan is on strengthening export controls for AI chips through what it terms “creative approaches.” It outlines two primary policy recommendations. The first advocates for government organizations, including the Department of Commerce and the National Security Council, to collaborate with the AI industry on developing chip location verification features. The second recommendation calls for establishing a dedicated effort to enforce potential chip export restrictions, notably highlighting a gap in current controls which predominantly focus on major chip manufacturing systems rather than critical component subsystems.
Furthermore, the AI Action Plan stresses the necessity of aligning with global allies on these measures. “America must impose strong export controls on sensitive technologies,” the plan asserts. “We should encourage partners and allies to follow U.S. controls, and not backfill. If they do, America should use tools such as the Foreign Direct Product Rule and secondary tariffs to achieve greater international alignment.”
Despite these ambitious objectives, the plan remains light on specifics regarding the implementation of global AI alliances, coordinated allied chip export restrictions, or collaboration with U.S.-based AI companies on verification features. Instead, it seems to lay the groundwork for future sustainable AI chip export guidelines rather than presenting immediate, detailed policies.
This suggests that comprehensive chip export restrictions will require additional time to formulate. Recent actions by the Trump administration underscore this fluidity; for instance, in July, semiconductor giants like Nvidia and AMD received approval to resume selling AI chips developed for China, a reversal from earlier licensing restrictions that had impacted Nvidia’s presence in the Chinese market. Moreover, the administration formally rescinded the Biden administration’s AI diffusion rule in May, just days before its scheduled implementation, which had aimed to cap AI computing capacity purchases by certain countries.
The Trump administration is anticipated to sign multiple executive orders on July 23. However, it remains unclear whether these orders will provide the detailed blueprints necessary to achieve the goals outlined in the AI Action Plan. For now, any executive orders concerning chip export restrictions are likely to focus on mobilizing relevant government departments to define a strategic path forward, rather than enacting formal, immediate guidelines.
