Commerce Chief Lutnick Ties AI Race to Limited Chip Sales for China

U.S. Commerce Secretary Howard Lutnick said the contest over artificial-intelligence standards has become a strategic race between the United States and China, underscoring Washington’s determination to keep a technological edge. In a CNBC interview on 15 July, Lutnick said the administration aims to stay “one step ahead” of Beijing so that Chinese companies continue to buy American semiconductors. Lutnick disclosed that sales of what he called the United States’ “fourth-best” chip were folded into a recently concluded rare-earth magnets agreement with China. The move is intended to make Chinese developers reliant on the U.S. technology stack while limiting Beijing’s access to the most advanced processors. He added that the Commerce Department is monitoring steel imports, accusing producers in South Korea, China and Japan of dumping the metal in the U.S. market. Lutnick did not indicate whether additional trade measures are imminent, but said maintaining fair competition across critical supply chains remains a priority.