U.S. seeks industry cooperation to block China from chips

Commerce Secretary Howard Lutnick announced on Tuesday that the Trump administration is seeking assistance from companies and foreign governments to stop China from acquiring U.S. semiconductors. He expressed concern that Chinese AI company DeepSeek has used American chips inappropriately. Lutnick stated, "People took our chips and redirected them to China for money." During a conference at the Bureau of Industry and Security, Lutnick emphasized the threats posed by these actions. He warned that the trade of American chips to China could undermine U.S. values and national security. Lutnick mentioned that the administration plans to incorporate export controls into trade agreements. This aims to encourage countries to choose between aligning with American ideals or opting for profit over security. Lutnick highlighted the potential risks if the U.S. were to "lose Taiwan" and therefore access to crucial semiconductor supplies. He underlined the importance of boosting domestic production of key materials like aluminum, steel, and chips. "We need to build drones and we need to protect our drones," he added, stressing the need for a stronger manufacturing base in the U.S.