The US lifted sanctions against China, the United States has paused planned sanctions against China’s Ministry of State Security over the large-scale cyber-espionage campaign known as “Salt Typhoon.” The move aims to preserve the fragile trade truce reached by Donald Trump and Xi Jinping. Current and former officials say Washington fears that new punitive measures could disrupt the ongoing diplomatic thaw.
The administration has also held back from introducing new export restrictions following talks in Busan. The White House is now focused on maintaining “stability” until the US reduces its reliance on China for rare-earth elements — a critical supply chain chokepoint.
This approach has fueled frustration among national-security hawks, who warn that avoiding sanctions after MSS hackers intercepted unencrypted communications of senior US officials undermines American security.
Washington Lifts China Sanctions
| Decision | Reason | Reaction |
|---|---|---|
| Suspension of MSS sanctions | Protect trade truce | Strong criticism from hawks |
| No new export restrictions | Maintain stability | Concerns over tech security |
| Reviewing Nvidia export licenses | Business pressure | Fears of tech leakage |
| Increased oversight (S. Miller) | Policy coordination | Internal pushback |
How China is shackling Trump’s cyber agenda
Officials are also debating whether Nvidia may receive licenses to export its advanced H200 chips to China. A previous idea to authorize sales of Blackwell chips was rejected by advisers due to strategic risks.
Additional tensions arose after a White House memo expressed concerns about Alibaba’s alleged ties to Chinese military operations — claims the company denies.
US Freezes China Penalties
- increased capacity of Chinese intelligence operations;
- deeper US technological dependency;
- risk of high-level data leaks;
- China tightening control over supply chains;
- short-term political gains over long-term security.
The White House insists that export controls remain strict, while China has agreed to curb fentanyl precursors, purchase American agricultural products, and stabilize rare-earth supplies.
The US lifted sanctions against China’s – Salt Typhoon
Failure to address such actions could embolden China’s intelligence services, compromise US national security, and intensify long-term strategic dependence. Ultimately, inaction risks shifting the global balance of power in China’s favor.