Trump Admin Sounds Alarm On Global Chinese AI Expansion

The global expansion of Chinese artificial intelligence data centers sounded alarm bells for the Trump administration, leading them to create an American coalition that seeks to counter China.

Huawei, a major Chinese AI infrastructure manufacturer, pitched the Egyptian government to deliver hardware to build data center for military, surveillance and other public sector uses, Bloomberg reported, citing people familiar with the matter. The Trump administration reportedly pitched Nvidia, Advanced Micro Devices (AMD) and Microsoft about establishing a coalition to counter Huawei’s bid to Egypt.

The proposal could help China compete against America’s dominance in global AI infrastructure and set Huawei as a key provider of high-tech infrastructure in Africa and the Middle East.

Huawei pitched African governments such as Egypt and Kenya to use its AI chips for education and health care, Bloomberg reported. Kenya has an American data center meant to serve as a symbol of the Biden administration’s African AI diplomacy.

The Commerce Department in May 2025 warned the world that using Huawei’s Ascend AI chips could result in penalties, although Bloomberg stated it remains unclear if American officials invoked this guidance in conversations with the Egyptian government.

“Egypt is one of dozens of countries with whom we are speaking about US technology leadership on artificial intelligence,” a State Department spokesperson told the Daily Caller News Foundation. “America leads the world in AI technologies, and American AI benefits the world by setting the gold standard for technology that is responsibly developed, rooted in transparency and free from ideological bias and manipulation.”

The spokesperson added the U.S. “stands ready to partner with countries on AI development and deployment in ways that respect sovereignty and expand capabilities,” the spokesperson said.