Sudden withdrawal of the “AI chip export license” draft, further regulatory uncertainty under the Trump administration!

The US Department of Commerce has withdrawn a draft regulation intended to implement licensing controls on AI chip exports. On Friday, the US Office of Management and Budget (OMB) website updated the status, showing that the interdepartmental review process for the regulation had ended, the measure had been withdrawn, but no further details were provided. According to reports citing officials from the Trump administration, the withdrawn document was only a draft, and related discussions remain in the preliminary stages. The draft originally signified that the Trump administration had taken a substantial step in formulating global chip export policies, involving export approval mechanisms for major chip manufacturers such as Nvidia and AMD. However, with the draft's withdrawal, uncertainty regarding US chip export controls will continue. Reasons for withdrawal The above draft required the US Department of Commerce's Licensing Office to conduct case-by-case reviews of AI chip exports involving Nvidia and AMD. Approval conditions covered multiple factors, including intergovernmental agreements and the computing power sought by end users. According to Bloomberg’s earlier report, the draft was likely to be significantly amended or completely shelved. The Trump administration had previously made it clear to distinguish its regulatory approach from that of the previous government. The US Department of Commerce stated last week: We will not return to the Biden administration's ‘AI Diffusion Framework’, which is cumbersome, overreaching, and has severe consequences. The US ‘AI Diffusion Framework’ was a set of export control rules launched by the Biden administration in January 2025, aiming to control the global flow of advanced AI chips and model weights through a three-tier licensing system. After taking office, the Trump administration criticized the framework for “stifling innovation” and “imposing heavy regulatory burdens on enterprises,” and officially announced its abolition in May 2025. The withdrawn draft was promoted by the Trump administration as an alternative solution to fill the policy gap after abolishing the Biden-era regulatory framework. Its withdrawal indicates that the Trump administration's new global chip export control system is still being formed, and the final framework remains to be defined. Risk Warning and Disclaimer The market has risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the unique investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. Investment decisions are at your own risk.