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Trump reverses course on Middle East tech policy, but will it be enough to counter China?

President Donald Trump secured $2 trillion worth of deals with Saudi Arabia, Qatar and the UAE during his trip to the Middle East last week in what some have argued is a move to counter China’s influence in the region.
While China has increasingly bolstered its commercial ties with top Middle Eastern nations who have remained steadfast in their refusal to pick sides amid growing geopolitical tension between Washington and Beijing, Trump may have taken steps to give the U.S. an edge over its chief competitor.
But concern has mounted after Trump reversed a Biden-era policy – which banned the sale of AI-capable chips to the UAE and Saudi Arabia – that highly coveted U.S. technologies could potentially fall into the hands of Chinese companies, and in extension, the Chinese Communist Party (CCP).
U.S. President Donald Trump walks with Saudi Crown Prince Mohammed Bin Salman during a welcoming ceremony in Riyadh, Saudi Arabia, May 13, 2025. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS )
TRUMP SIGNS ‘STRATEGIC ECONOMIC PARTNERSHIP’ WITH SAUDI ARABIA
China hawks on both sides of the aisle noted their concern after Trump entered into an agreement with the UAE to build the largest artificial intelligence hub outside the United States, coupled with the tens of billions of dollars’ worth of deals U.S. companies like Nvidia, ChatGPT, Google, Amazon and Qualcomm entered into with state-backed Saudi AI ventures, including direct chip sales.
«This deal could very well be dangerous because we have no clarity on how the Saudis and Emiratis will prevent the Chinese Communist Party, the Chinese government, the Chinese manufacturing establishment from getting their hands on these chips,» Senate Democratic leader Chuck Schumer said on the Senate floor last week.
«Inevitably, when foreign countries end up with American-made chips, the CCP, the Chinese Communist Party, sooner or later gets ahold of these American chips and their secrets in them,» he said. «That’s why we’ve had such strong restrictions against exporting these chips to other counties.»
Similarly, following the announced deals, Republican chair of the House Select Committee on the Chinese Communist Party, Rep. John Moolenaar, R-Mich., took to X to say, «The CCP is actively seeking indirect access to our top tech. Deals like this require scrutiny and verifiable guardrails.
«We raised concerns about G42 last year for this very reason—and we need safeguards in place before more agreements move forward,» he added in reference to an Emirati AI development holding company.

U.S. President Donald Trump attends a business forum at Qasr Al Watan during the final stop of his Gulf visit, in Abu Dhabi, United Arab Emirates, May 16, 2025. (REUTERS/Amr Alfiky)
TRUMP WRAPS MOMENTOUS MIDDLE EAST TRIP WITH ECONOMIC DEALS, SYRIA SANCTIONS RELIEF AND WARNING TO IRAN
By the end of Trump’s trip, the House Select Committee on the Chinese Communist Party had introduced new legislation «to stop advanced U.S. AI chips from falling into the hands of adversaries like the Chinese Communist Party (CCP).»
«The ambition is understandable – drawing the Gulf states deeper into the U.S. tech ecosystem is a logical way to counterbalance China’s growing influence,» Craig Singleton, China Program Senior Director and Senior Fellow with the Foundation for Defense of Democracies told Fox News Digital. «But the devil is in the details.
«Without rigorous safeguards and clear conditions on technology transfer, there’s a real risk of leakage — whether it’s advanced chips, know-how, or access to AI platforms,» he warned. «If these deals lack meaningful restrictions, they could end up strengthening the very actors they’re meant to contain.»
The Commerce Department did not immediately respond to Fox News Digital’s questions on AI security.
While questions remain about the future of AI security, some reports suggested that the expanded U.S. agreements could help cement the U.S. as the global leader in the emerging technology and help shape its landscape.
But China has interests outside of AI in the region that pertain to security, economic and energy sectors – all of which the U.S. has a vested interest in deterring.

United Arab Emirates President Sheikh Mohammed bin Zayed Al Nahyan greets President Donald Trump at Abu Dhabi International Airport on Thursday, May 15, 2025. (AP Photo/Altaf Qadri)
Trump was the first president in nearly 20 years to visit the UAE, which security experts have told Fox News Digital will go a long way to further not only geopolitical goodwill amid major unrest stemming from the wars in Gaza and Ukraine, but it could even further bolster economic and security opportunities between Washington and Abu Dahbi.
«Trump showing up and re-committing American military and economic power to support the UAE’s stability, security, and success in a dangerous neighborhood can pay real dividends going forward,» John Hannah, former national security advisor to Dick Cheney and current Randi & Charles Wax senior fellow at the Jewish Institute for National Security of America (JINSA), told Fox News Digital.
«Since at least the time of President Obama’s nuclear deal with Iran, there’s been a slow, but noticeable drift in UAE strategy away from its deep reliance on the United States toward more of a hedging policy of playing all sides of the global great game, including an increasingly close relationship with China,» he added.
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IN FLIGHT – MAY 14: U.S. President Donald J. Trump speaks to travelling media aboard Air Force One on a range of issues, including Syria, as he flies to Doha, Qatar on May 14, 2025. Trump is on the second day of a multi-nation tour of the Gulf region focused on expanding economic ties and reinforcing security cooperation with key U.S. allies. (Photo by Win McNamee/Getty Images)
Hannah explained that a period of American weariness of the Middle East enabled China to effectively expand its geopolitical interests in the vital region.
The expert pointed out that not only does the UAE host U.S. troops on its soil, but its trade value with the U.S. – even prior to the $1.4 trillion deal it reached earlier this year – was worth some $35 billion annually.
«With a country as influential and resource-rich as the UAE, correcting that unhelpful perception and putting the strategic relationship back on a much more positive dynamic is an important goal,» Hannah said.
Fox News Digital could not immediately reach the UAE foreign ministry for comment.
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Justice Department investigating University of California over alleged DEI-based hiring

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The Justice Department has announced it is investigating the University of California (UC) for alleged Title VII discrimination violations in its hiring practices.
The agency announced Thursday that its Civil Rights Division is looking into the university’s individual campuses regarding potential race- and sex-based discrimination in employment practices.
The university’s «UC 2030 Capacity Plan» directs its campuses to hire «diverse» faculty members to meet race- and sex-based employment quotas, the Justice Department said.
The Justice Department has launched a Title VII investigation into the University of California over alleged race- and sex-based discrimination in faculty hiring. (AP Photo/Ben Margot, File)
UNIVERSITY OF MICHIGAN, LAW JOURNAL SUED FOR ALLEGEDLY DISCRIMINATING AGAINST STRAIGHT WHITE MALES
«These initiatives openly measure new hires by their race and sex, which potentially runs afoul of federal law,» the Justice Department said in a press release.
«The Civil Rights Division’s Employment Litigation Section will investigate whether the University of California is engaged in a pattern or practice of discrimination based on race, sex, and other protected characteristics, pursuant to Title VII of the Civil Rights Act of 1964.»
Title VII prohibits an employer from discriminating against an individual on the basis of race, color, religion, sex, or national origin, Harmeet Dhillon, the assistant attorney general of the Justice Department’s Civil Rights Division, said.
«Public employers are bound by federal laws that prohibit racial and other employment discrimination,» Dhillon said. «Institutional directives that use race- and sex-based hiring practices expose employers to legal risk under federal law.»
The Justice Department’s Civil Rights Division wrote to the university on Thursday, informing it of the investigation.
«Our investigation is based on information suggesting that the University of California may be engaged in certain employment practices that discriminate against employees, job applicants, and training program participants based on race and sex in violation of Title VII,» the letter reads.
«Specifically, we have reason to believe the University of California’s ‘UC 2030 Capacity Plan’ precipitated unlawful action by the University of California and some or all its constituent campuses.»

In March, UC dropped diversity statements from its hiring practices amid President Donald Trump’s threats that schools could lose federal funding. (iStock)
TRUMP ADMINISTRATION TARGETS IVY LEAGUE SCHOOL, LAW JOURNAL FOR RACIAL DISCRIMINATION
UC said it will work in good faith with the Justice Department as it conducts its investigation.
«The University of California is committed to fair and lawful processes in all of our programs and activities, consistent with federal and state anti-discrimination laws,» a UC statement provided to Fox News Digital reads. «The University also aims to foster a campus environment where everyone is welcomed and supported.»
The university’s UC 2030 Capacity Plan lays out a goal of becoming a national model as a Hispanic-Serving Institution (HSI) and Minority-Serving Institution (MSI) system. The plan outlines a pipeline strategy to diversify faculty and researchers through expanded graduate enrollment and outreach to institutions that serve underrepresented students. The DOJ, however, claims these initiatives may violate Title VII by functioning as de facto employment quotas.
In March, UC dropped diversity statements from its hiring practices amid President Donald Trump’s threats that schools could lose federal funding.
The university’s provost, Katherine S. Newman, sent out a letter to the system’s leaders informing them that diversity statements are no longer required for new applicants. Newman wrote that while some programs and departments have required them, the university has never had a policy of diversity statements and believes it could harm applicant evaluation.

University of California, Berkeley entrance sign on the corner of Oxford Street and Center Street. (iStock)
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«The requirement to submit a diversity statement may lead applicants to focus on an aspect of their candidacy that is outside their expertise or prior experience,» the letter obtained by Fox News Digital reads.
She added that employees and applicants can still reference accomplishments related to diversity, equity and inclusion (DEI) on their own, but requiring stand-alone diversity statements is no longer permitted.
Fox News’ David Spunt and Lindsay Kornick contributed to this report.
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Iranian foreign minister reiterates ‘serious damage’ to nuclear facilities, despite ayatollah’s comments

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Iranian Foreign Minister Abbas Araghchi admitted in an interview on state TV that the U.S.’s strikes caused serious damage to Tehran’s nuclear facilities, despite Ayatollah Ali Khamenei’s insistence that there was minimal impact.
Araghchi said in the interview that «the level of damage is high, and it’s serious damage,» according to the Associated Press.
Post-strike assessments have shown that Iran’s nuclear sites suffered damage in both U.S. and Israeli attacks. All three countries — Iran, Israel and the U.S. — have reached similar conclusions about the extent of the damage, despite what a leaked intel report indicated.
Iranian Foreign Minister Abbas Araghchi contradicts Ayatollah Ali Khamenei on the extent of damage caused by U.S. strikes on the country’s nuclear facilities. (Associated Press)
IRAN, ISRAEL AND US AGREE THAT ISLAMIC REPUBLIC NUCLEAR SITES WERE ‘BADLY DAMAGED’ DESPITE LEAKED INTEL REPORT
The only leader who seemingly does not agree with the assessments is Ayatollah Ali Khamenei, who said that «the Americans failed to achieve anything significant in their attack on nuclear facilities,» according to reports.
Khamenei appears to be more focused on projecting strength than reflecting reality. He described Iran’s attack on Al-Udeid, the American airbase in Qatar, as a «heavy slap to the U.S.’s face.» While President Donald Trump dismissed it as a «very weak response» and thanked Iran for giving the U.S. «early notice.»
International Atomic Energy Agency (IAEA) Director General Rafael Grossi said in a statement on Tuesday that the agency had «seen extensive damage at several nuclear sites in Iran, including its uranium conversion and enrichment facilities.»

This satellite picture by Planet Labs PBC shows Iran’s underground nuclear enrichment site at Fordo following U.S. airstrikes targeting the facility, on Sunday, June 22, 2025. (Planet Labs PBC via AP)
IRAN TRYING TO ‘SAVE FACE’ FOLLOWING US STRIKE ON NUCLEAR SITES, EXPERT SAYS
In addition to discussing the damage done to Iran’s nuclear sites, Araghchi also addressed the possibility of resuming talks with the U.S. He said that the American strikes «made it more complicated and more difficult» for Iran to come to the table, but did not rule out the possibility that negotiations could resume.
Nuclear talks with the U.S. might not be entirely off the table for Iran after last week’s strikes—even if Tehran is not interested in reentering negotiations right away.
The possibility of negotiations was already in question prior to Operation Midnight Hammer, as Tehran viewed the U.S. as being «complicit» in Israel’s Operation Rising Lion, according to Reuters, citing Iranian U.N. Ambassador Ali Bahreini.

US Vice President JD Vance, from left, US President Donald Trump, Marco Rubio, US secretary of state, and Pete Hegseth, US secretary of defense, during an address to the nation in the East Room of the White House in Washington, DC, US, on Saturday, June 21, 2025. (Carlos Barria/Reuters/Bloomberg via Getty Images)
EX-SECRETARY OF STATE CONDOLEEZZA RICE CALLS US STRIKES ON IRAN A ‘SHOT IN THE ARM’ FOR AMERICAN CREDIBILITY
Trump on Wednesday expressed optimism in the U.S.’s ability to resume nuclear talks with Iran.
«We’re going to talk to them next week, with Iran. We may sign an agreement, I don’t know. To me, I don’t think it’s that necessary. I mean, they had a war. They fought. Now they’re going back to their world. I don’t care if I have an agreement or not. The only thing we would be asking for is what we’re asking for before about, we want no nuclear [program]. But we destroyed the nuclear,» Trump said.
Despite Trump’s statement, there is still no clear indication that the countries have plans to meet in the near future.
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The Associated Press contributed to this report.
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