China Leaves Trump Flummoxed as New AI Rules Delayed
US President Donald Trump has delayed signing an executive order on artificial intelligence (AI) that was scheduled for last Thursday (21 May) local time, stating he did not want the new policy to hinder the US’s position in the AI technology competition with China. This highlights how China’s rapid technological advancements have heightened US concerns over maintaining dominance.
Trump was originally set to sign the rules at a ceremony attended by AI company CEOs, but the event was abruptly cancelled. “I think it would just be a hindrance. We are leading China, we are leading everyone, and I don’t want to do anything that could disrupt that advantage,” Trump said in the Oval Office, according to Reuters on Monday (25 May 2026).
Several US media outlets, including Semafor and The Washington Post, previously reported the delay followed input from xAI founder Elon Musk, Meta Platforms CEO Mark Zuckerberg, and former Trump AI adviser David Sacks. However, Musk denied the claims on social media platform X, stating the reports were false and that he was unaware of the executive order’s details.
According to two Reuters sources, the rules would have established a voluntary framework requiring AI developers to coordinate with the US government before releasing advanced AI models to the public. Conversely, the tech industry fears the policy could pressure company profits, as launching new AI models might slow down or require adjustments to meet government security standards.
Moreover, Trump was reportedly considering directing advanced AI use to bolster US government cybersecurity systems, including in strategic sectors such as banking and healthcare. Debates over AI regulation in the US have intensified amid growing concerns about cybersecurity risks from new AI models, including those developed by Anthropic.
Nevertheless, since returning to the White House, Trump has generally adopted a more lenient approach towards large tech companies compared to the Joe Biden administration, amid AI’s rapid growth and its significant role in the US stock market. However, some Trump supporters continue to push for stricter safeguards in the AI industry.