The MAGA administration has reportedly halted a package of sanctions against China over a colossal spying campaign because it doesn’t want to upset Donald Trump’s trade deal with President Xi Jinping.
Officials with knowledge of the plans told the Financial Times that the measures had been drafted after the Chinese Ministry of State Security hacked into multiple American telecom providers, allegedly permitting them to access virtually any phone they wanted to target.
“The administration appears to be giving ground on export controls in order to secure President Trump’s trip to Beijing and buy time to diversify critical mineral reliance away from China,” Zack Cooper, an expert on Asian security at the American Enterprise Institute, told the newspaper.
“I worry that this is simply concessions masquerading as strategy,” he added.
The quiet death of the sanctions package comes after Trump and Xi agreed a truce in their trade spat during a summit in South Korea in October.
Sources told the FT that the White House is now more focused on maintaining a degree of calm in relations with China as the U.S. works to put a dent in the Asian country’s dominance of the rare earths sector, and as Trump eyes a state visit to the Chinese capital next April.
“Xi has a history of breaking promises to American presidents, and the Chinese communist party has a track record of exploiting negotiations to buy time strategically,” Michael Sobolik, a China expert at the Hudson Institute, told the FT.
“President Trump needs to look out for this trap,” he added.
Behind the scenes, top MAGA officials are also reportedly preparing for a closed-door summit at which they will discuss whether to allow AI chip manufacturer Nvidia, run by Trump ally Jensen Huang, to begin selling some of its more advanced systems to Chinese customers.
Trump had already made an exception for Nvidia in his tariff regime against China, in exchange for widely decried sales commissions to the White House. Some of his advisers have now warned against the sale of more advanced chips, given the disadvantage this may afford the U.S. sector in the global race to AI dominance.
The MAGA administration has reportedly appointed Trump’s Deputy Chief of Staff Stephen Miller to ensure departments do not undertake any measures or actions that might otherwise threaten the truce reached with Xi.
The Daily Beast has reached out to the White House for comment on this story.
