Washington: The Administration of US President Donald Trump announced the removal of a set of new restrictions on the export of semiconductors used in the development of artificial intelligence, which were to be added, effective May 15, to previous controls dating back to 2022 and 2023.

According to National Iraqi News Agency, these restrictions, enacted by the administration of former Democratic President Joe Biden last January, primarily targeted China, particularly the H20 SIM cards, which were specifically designed by the American giant Nvidia to comply with the previous restrictions.

The US Department of Commerce replaced these strict rules with non-binding cautionary recommendations, warning of the potential consequences of using US SIM cards to develop Chinese artificial intelligence models. The department’s statement stated that “these new conditions will stifle American innovation and burden companies,” adding that these measures “have undermined US diplomatic relations with dozens of countries.”

This decision comes just one month after the Trump administration informed Nvidia of the need to obtain a license to export these types of SIM cards to China and some other countries. The company’s share price rose 5.98% on the New York Stock Exchange following the announcement of the new decision.

This shift in US policy toward China coincides with the announcement of a radical reduction in mutual tariffs between the two countries for 90 days, as part of the two sides’ efforts to reach a comprehensive trade agreement.