Key points
- Tech industry lobbying blocks stricter regulations
- Trump lifts restrictions, boosting China’s tech
- Biden’s proposed regulations face strong opposition
WASHINGTON: US lawmakers have made four attempts since September last year to address a significant loophole: China bypassing export bans on powerful American AI chips by renting them through US cloud services. However, all proposals failed, despite extensive lobbying from over 100 tech industry representatives.
The ongoing debate over technology sales to China has become a major issue ahead of a meeting between leaders Donald Trump and Xi Jinping. While the US government highlights concerns over national security and human rights abuses, it has consistently allowed American firms to sell technology to Chinese authorities, including surveillance companies, over five administrations, reports AP News.
The tech industry’s influence is evident. For example, despite US export rules on advanced chips, China imported $20.7 billion worth of chipmaking equipment from US firms in 2024. Trump has also lifted export restrictions on chips to China in exchange for a 15% revenue share, despite national security concerns.
US tech companies
Lobbying filings show US tech companies and their trade associations have spent hundreds of millions of dollars on efforts to influence China-related trade policies. Microsoft and Amazon Web Services (AWS) have been noted for providing cloud services to Chinese companies, including those involved in surveillance, bypassing restrictions. Despite this, both companies deny direct involvement in supplying surveillance systems to Chinese authorities.
US efforts to regulate tech exports to China have repeatedly failed. In 2006, for instance, a bill to restrict exports of biometric devices to China did not pass.
Surveillance technology
Similar attempts to regulate surveillance technology have stalled, despite bipartisan support for tougher measures. The US government’s reluctance to act reflects the power of tech industry lobbying, which has long influenced policy decisions.
China continues to receive advanced surveillance technology despite US sanctions. In 2021, the Biden administration declared Chinese surveillance tech a national security threat, but proposed regulations have faced significant opposition, leading to their failure.
The lack of accountability for US tech companies’ involvement in surveillance highlights the ongoing issues surrounding technology sales to China.
