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Is It Too Late for the US to Catch up with China on Tech?

  • On May 12, 2025, the U.S. Commerce Department rescinded the Biden-era AI Diffusion Rule to target Chinese firms like Huawei more precisely.
  • This policy shift followed criticisms from Nvidia CEO Jensen Huang and White House advisor Sriram Krishnan, who argued the prior rule created disparities and stifled U.S. Innovation.
  • The Trump administration maintains strict AI chip export controls on China, causing market share losses for Nvidia and AMD, while China advances domestic AI via firms like Alibaba and DeepSeek.
  • Nvidia expects a $5.5 billion impact and Huang warned China’s AI market could represent a $50 billion opportunity, calling restrictions a failure needing reduction.
  • The U.S. Aims to balance national security with supporting tech competitiveness, but Beijing condemns the measures as bullying, complicating global AI governance and economic relations.
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Wccftech broke the news in on Thursday, May 22, 2025.
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