In a post on X, White House AI & Crypto Czar David Sacks said it is time for the U.S. to update its assumptions related to export controls following reports coming out of China related to AI developments.
Sacks said there was major news from China, which included Chinese tech giant Huawei Technologies introducing a new AI chip to compete with Nvidia (NASDAQ:NVDA); and the Chinese government instructing Chinese companies to stop buying certain Nvidia AI chips.
“Taken together, the message is clear: China is not desperate for our chips. It is producing its own, and intends to compete globally in the semiconductor market,” Sacks said in a post on X, formerly Twitter.
On Thursday, China’s foreign ministry said the country is willing to maintain dialogue with all parties involved to keep global industrial and supply chains stable, in response to reports of a Chinese regulator ordering companies to not buy Nvidia’s AI chips.
Sacks said, as per analysts, Nvidia still has a substantial lead, but Huawei is using its networking prowess to remain competitive. In particular, Huawei compensates for weaker individual chips by clustering more chips together.
“It’s time for Washington to update its assumptions with regard to export controls. American chip companies must be allowed to sell the American technology stack abroad, albeit with security requirements, else we forfeit the AI race to China. If we refuse to do business with a country, we push it into China’s arms,” Sacks added.
Sacks noted that excessive bureaucratic delays are a “gift for Huawei,” which will fill out purchase orders as American companies fill out forms.
“The hawkish position with respect to China is to help American companies win the AI race, not to help Huawei create a Digital Silk Road,” said Sacks.
Sacks noted that the question of what the U.S. sells China will always be complicated, and there’s room for a range of opinions on that. “But the question of whether we sell to the rest of the world, especially our friends and allies, should be an easy one,” Sacks noted.
On Friday, President Donald Trump and President Xi Jinping are expected to discuss TikTok, Nvidia, and trade, among other things on a phone call.