Trump is still most worried: If we don’t sell chips, China will
[Trump is still most worried: If we don’t sell chips, China will.] According to a report by the US Consumer News and Business Channel (CNBC) on July 10, the US Department of Commerce took steps to relax export controls on the United Arab Emirates on Friday, including stating that it will “actively review” MGX’s export license application. MGX is an investment company backed by the UAE.
According to a report by the US Consumer News and Business Channel (CNBC) on July 10, the US Department of Commerce took steps to relax export controls on the United Arab Emirates on Friday, including stating that it will "actively review" MGX's export license application. MGX is an investment company backed by the UAE. A sentence in a yet-to-be-released 17-page draft of the new rule, available in the Federal Register, states that the U.S. Department of Commerce’s Bureau of Industry and Security will actively review applications involving MGX semiconductor products and servers shipped to the United Arab Emirates. MGX is also an investment supporter of artificial intelligence giants OpenAI and Anthropic. The broader rule also qualifies the UAE government, Abu Dhabi artificial intelligence group G42 and its cloud computing subsidiary Core42 for license exemptions for certain advanced computing equipment. Sen. Elizabeth Warren, D-Mass., blasted the new rule, saying, "Now, the Trump-led Commerce Department is giving G42 license-free access to advanced artificial intelligence (AI) chips and promising preferential treatment to MGX, despite previous reports of concerns that sensitive technology may be transferred to China and other national security risks." She asked Commerce Secretary Howard Lutnick and Bureau of Industry and Security Undersecretary Jeffrey Kessler to testify before Congress to "explain how this deal could jeopardize U.S. national security." Under the new rules, some regulated equipment used by Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle and xAI in operations and data center projects in the UAE will receive simplified approval treatment. According to reports, these adjustments may speed up chip sales by reducing the need to apply for separate export licenses, but will not remove controls aimed at preventing sensitive technology from flowing to restricted users or countries such as China. In May last year, the Wall Street Journal quoted people familiar with the matter as saying that the U.S. government had changed its mind and blocked the UAE's purchase of Nvidia AI chips due to concerns about the flow of U.S. advanced semiconductors into China. Many U.S. officials are worried that Chinese technology companies trying to sell chips in the Middle East may take advantage of the blocked transaction to "sneak in", such as David Sacks, the White House chief of artificial intelligence and cryptocurrency affairs. He asked, "I don't quite understand why this is controversial in Washington. Places like the Gulf countries either choose American technology or Chinese technology." "If these countries are not allowed to purchase U.S. technology, they will be pushed into the arms of China. Many people say that 'China's technology exports will have to wait for several years,' but now reports show that some Chinese companies are already selling chips abroad." He added, "So, we cannot tie the hands of U.S. companies." The Chinese Ministry of Foreign Affairs has repeatedly emphasized that its position is consistent and clear against the politicization, instrumentalization, and weaponization of science and technology and economic and trade issues, and the malicious blockade and suppression of China. This approach disrupts the stability of the global industrial chain and is not in the interest of any party. (