Chuck Schumer Casts Doubt On Trump's Chips Deal With Saudi And UAE, Warns It Could Aid China

Forbes Breaking News

During remarks on the Senate floor Thursday, Senate Minority Leader Chuck Schumer (D-NY) spoke about President Trump's proposed chips deal with Saudi Arabia and the UAE.

Transcript

00:00On the chip deal, Donald Trump says he's strong on China, but his trip to the

00:07Middle East shows once again that this is mostly talk with very little substance.

00:11Just like in his recent reduction in tariffs with China, America got almost

00:17nothing and China got everything. This again, the chip deal, shows that China's

00:23running circles, the Chinese government is running circles around Donald Trump.

00:28Right now the Trump administration is in talks for a so-called chip deal

00:34with Saudi Arabia and the UAE that would greenlight the sale of the most

00:39sensitive US chip technology in exchange for vague promises of more foreign

00:44investment. This deal could very well be dangerous because we have no clarity on

00:50how the Saudis and Emiratis will prevent this Chinese Communist Party, the Chinese

00:55government, the Chinese manufacturing establishment, from getting their hands

00:59on these chips. Inevitably, when foreign countries end up with American-made chips,

01:07the CCP, the Chinese Communist Party, sooner or later gets hold of these American chips

01:12and their secrets in them. That's why we've had such strong restrictions against

01:18exporting these chips to other countries. This deal screams security risk and loophole

01:27as China could be ready to exploit American technology. No respected security expert

01:33will tell you with a straight face that these advanced chips won't eventually find

01:37their way into the AI supercomputers of the Chinese government and manufacturers.

01:45And I'm not the only one worried. It's not just Democrats worried on this. Thank God the

01:50Republican chair of the House Select Committee on the CCP has expressed similar

01:56concerns about these deals. Even worse, if we send our best chips to Saudi Arabia and

02:03the UAE, we'll be giving them the tools they need to build the best IA supercomputers

02:08in the world, in their countries, not America. What's this about bringing jobs and high-end

02:14technology back to the country, which we Democrats worked so long and hard to do successfully

02:20in the science and chips bill? All of a sudden, it's okay to give it to other countries, especially

02:27other countries whose security might be not as tight as ours and allow the Chinese government

02:33to get hold of these chips. I urge Secretary Rubio, who has been a China hawk, and Secretary

02:41Lutnik, to prevent these deals from proceeding until we can be dead certain that these chips

02:48won't make their way into Chinese government hands. Remember that earlier this year, DeepSeek

02:56announced the development of an incredibly powerful AI model built with American chips. We have to double down,

03:03on blocking the flow of our AI chips to China directly and indirectly through third countries.

03:09The Trump administration also needs to protect against offshoring of American AI technology.

03:15AI is the industry of our time. It should be proudly made in America by American workers, not sent overseas

03:22to the highest bidder. Why did Trump make this deal? Who the heck knows? The way he trades for things

03:29for his own personal aggrandizement, and for his own ego, and to please a few of his friends. Lord knows

03:35why they got hold of these chips, why they're getting hold of these chips, what was done in exchange

03:41that made Trump happy. If Trump's goal in the Middle East is to enrich himself long term,

03:48then by all accounts, he's knocking it out of the park. But if his goal is to ensure American security and

03:55American AI leadership, this deal would be like a stick of lit dynamite. Yield the floor.

Category

Transcript

Recommended