Trump's Attack on China Becomes a Double-Edged Sword, the US Faces Its Own Challenges
Washington – The Trump administration’s policy restricting artificial intelligence (AI) chip exports to China, which began during the previous Trump presidency, is now viewed as a potential boomerang for the United States. Strict controls on AI chips have caused tech giant NVIDIA to lose one of its largest markets.
Conversely, Trump’s policy has become a double-edged sword. Thanks to these export controls, China has become increasingly motivated to develop its domestic AI chip industry. China’s priority is clear: to eliminate technological dependence on the US.
As the US dominance in the AI sector is increasingly challenged, Trump has now recognised the importance of opening access to foreign markets. On Thursday (21 May) local time, according to documents reviewed by Reuters, the Trump administration plans to launch a new programme to persuade foreign companies to purchase American AI equipment with export financing worth billions of dollars.
This plan represents the latest US effort to defeat China in the competition to expand the global adoption of its technology, according to Reuters reporting from Sunday (24 May 2026).
The US Export-Import Bank (EXIM) is expected to approve the plan shortly. EXIM will provide financing for foreign purchases of American AI tools, according to a one-page programme description reviewed by Reuters.
Under the programme, the US Department of Commerce must approve special licenses for sensitive AI technology, such as advanced chips manufactured by Nvidia, before financing agreements can be signed.
Financial support from EXIM will include insurance and loan guarantees for medium-term transactions and direct loans, as well as loan guarantees for long-term agreements, according to the document.
“The AI export initiative strengthens US AI leadership by modernising EXIM’s financing tools and supporting the export of trusted American AI technology across various future industries,” the document states.
It remains unclear which countries and companies will benefit from this new programme. What is certain is that this move demonstrates the Trump administration views global US AI exports as crucial to winning the AI race against China.
Last month, China’s DeepSeek released a free open-source AI model specifically designed for chips manufactured by Huawei. According to several AI proponents, this step shows China is attempting to gain global influence in both hardware and software used to create AI systems.
The DeepSeek model has been widely adopted over the past year because it can compete with the capabilities of American AI models, although some US companies have accused DeepSeek of exploiting their technology.
Since the Biden administration, the US has already restricted access to advanced American AI chips manufactured by Nvidia and AMD. This has opened new opportunities for China and many countries deemed high-risk to divert this valuable technology to China.