The Trump administration has paused several major technology security measures targeting Chinese companies ahead of a planned April meeting between US President Donald Trump and Chinese President Xi Jinping. The move, which has not been previously reported, has sparked debate in Washington over national security risks and trade diplomacy.
According to sources cited by Reuters, the decision reflects efforts to avoid antagonising Beijing following a trade truce reached between the two leaders in October.
Sources said the administration shelved measures that included:
A ban on China Telecom’s US operations
Restrictions on the sale of Chinese equipment for US data centres
Proposed bans on domestic sales of routers made by TP-Link
Restrictions on the US internet businesses of China Unicom and China Mobile
A separate proposal that would bar sales of Chinese electric trucks and buses in the US
Four people familiar with the matter said the decisions were made quietly and remain subject to change.
The shelving of the tech measures follows an October trade truce between Trump and Xi. As part of that meeting, China pledged to delay export restrictions on rare-earth minerals that are critical to global technology manufacturing.
Sources said the current approach reflects an attempt to stabilise relations ahead of Trump’s planned visit to Beijing in April, with Xi also invited to visit the US later in the year.
The US Commerce Department defended its actions, stating it continues to actively address threats.
It said it is using its authorities to "address national security risks from foreign technology, and we will continue to do so."
However, critics argue the pause leaves US infrastructure exposed at a time when demand for AI-driven data centres is rapidly increasing.
Matt Pottinger, former deputy national security advisor during Trump’s first term, warned that the US may be creating new vulnerabilities.
"At a moment when we are desperately trying to remove ourselves from Beijing's leverage over rare-earth supply chains, it is ironic that we're actually letting Beijing acquire new areas of leverage over the U.S. economy – in telecoms infrastructure, in data centers and AI, and EVs,” he said.
Industry data shows US data centre capacity is expected to grow by nearly 120% by 2030, according to Jones Lang LaSalle.
The Chinese Embassy criticised the politicisation of technology and trade while welcoming engagement.
Beijing opposes "turning trade and technological issues into political weapons", and said cooperation could make 2026 "a year where our two major countries advance toward mutual respect, peaceful coexistence, and win-win cooperation."
TP-Link Systems Inc., which was spun off from a Chinese firm in 2024 and is now California-based, said it operates independently.
The company emphasised it is "with U.S.-managed software, U.S.-hosted data, and security practices that meet US industry standards."
"Any suggestion that we are subject to foreign control or pose a national security risk is categorically false," it added.
Some Democratic lawmakers objected to pausing the measures. Senate Minority Leader Chuck Schumer said:
“You can’t claim to be ‘tough on China’ and let the Chinese Communist Party flood their technology into critical infrastructure and companies across America – from the auto industry to telecommunications."
He added, "In his rush to please Chairman Xi, Trump is selling out our national security, industry, and risking the private personal data for millions of Americans.”
Sources said Commerce Undersecretary Jeffrey Kessler delayed advancing the measures for much of last year while seeking White House approval. After the October truce, staff were instructed to "focus on Iran and Russia."
Last month, the department removed the official leading the office overseeing foreign tech threats. She will be replaced by Katelyn Christ, who could revive the measures if US-China relations deteriorate after the April summit.
David Feith, who served in both Trump administrations, warned that Chinese-linked hardware could pose severe risks.
American data centres could become "remotely controlled islands of Chinese digital sovereignty," potentially embedding vulnerabilities into the US AI and energy infrastructure.
The Trump administration’s decision to pause China-focused tech restrictions underscores the delicate balance between diplomacy and national security. While aimed at stabilising US-China ties ahead of a pivotal summit, critics argue the delay could expose critical infrastructure to long-term risks—especially as AI and data centre expansion accelerates.