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China scoffs at America’s surprise offer to offloading downgraded AI tech

By DigiconAsia Editors | Tuesday, August 19, 2025, 4:26 PM Asia/Singapore

China scoffs at America’s surprise offer to offloading downgraded AI tech

Questioning the safety and motives of the surprising policy turnaround, Beijing signals continued focus on technological self sufficiency.

Recently, the Trump administration made a surprise move to ease AI chip export curbs for China.

Now, according to CNN reporting, China’s reaction to Washington’s policy shift has been anything but celebratory.

Beijing has responded with caution and underlying skepticism. Instead of embracing the access to US technology, Chinese officials and media have warned domestic firms about the risks of relying on US chips, labeling them as potential cybersecurity threats and possible vessels for American leverage in future disputes.

Behind closed doors, Chinese authorities have reportedly summoned NVIDIA executives for talks, and raising pointed questions about the chips’ “tracking and positioning” capabilities and potential remote shut-down features. This reflects China’s growing mistrust of Western tech, and the suspicion that these products could give the US undue leverage in future disputes.

Therefore, the country’s continued focus on building self-sufficiency in advanced semiconductors is likely to take priority. This mirrors a broader Chinese policy of accelerating domestic innovation. While the newly approved US chips hold commercial value, Chinese industry voices point out that these models are less advanced than those still under full export control, and characterize the US move as “offloading downgraded products” — not a genuine outreach.

The US government, meanwhile, touts the revenue-sharing deal as a smart blend of commercial benefit and national security, with billions potentially flowing into American coffers without compromising top-tier technology. However, some US lawmakers continue to express the same security anxieties that had led to bans of Huawei’s products.

The current misgivings signal a deep-seated mistrust and ongoing determination to forge ahead with a robust independent chip industry. Some Chinese commentators have even suggested the deal reveals American anxiety about losing ground in tech leadership, rather than genuine goodwill.

commentators have even suggested the deal reveals American anxiety about losing ground in tech leadership, rather than genuine goodwill.

The CNN report notes that China’s skepticism about American chips mirrors earlier US concerns about Chinese tech and signals a deepening contest of mutual suspicion — even as both sides remain tightly bound by trade and innovation in AI.

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