White House drops Biden-era export rules aimed at curbing China's chip access

• US plans to drop the Biden-era diffusion rule
• The export restrictions were affecting allies as well as countries of concern
• Trump wants to "end past conflicts and forge new partnerships" including in the Middle East

According to a new report by the South China Morning Post, the Trump administration is planning to rescind the Biden-era diffusion rule, which was introduced to restrict the spread of AI chips abroad.

The announcement came from White House AI and crypto official David Sacks, who revealed the change during the Saudi-US Investment Forum in Riyadh.

Sacks explained that Saudi Arabia is not considered to be a national security risk, calling for more open tech exports between trusted partners.

The US will open up tech exports to trusted countries

The diffusion rule was part of Biden's effort to block AI chip access to countries of concern, most notably China. China's military and AI capabilities were the primary cause for concern, with the White House previously worried that the country could use US-build semiconductors to advance its own technology.

However, Sacks explained that the rule has been affecting allies unnecessarily. Now that the US is seeking closer tech ties with Middle Eastern nations, accelerated by much lower tariffs than those imposed on China, export rules must change.

"The Trump administration has just announced that we will be rescinding what’s known as the Biden diffusion rule … it literally restricted the diffusion or proliferation of American technology all over the world," Sacks said.

Critics also argued that, with the export rules in place, countries were being forced to source tech from China due to the more favorable pricing and fewer restrictions.

"As I have shown repeatedly, I am willing to end past conflicts and forge new partnerships for a better and more stable world, even if our differences may be very profound," Trump explained in an address at the event.

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