Portugal was unexpectedly left out of the list of 18 “ally” countries exempt from new US export restrictions on AI-related chips (such as Nvidia’s latest GPUs). The decision surprised Lisbon and has triggered a wave of diplomatic and institutional efforts to reverse it before the public consultation ends on May 15.
Why Is Portugal Subject to Restrictions?
The key issue is Portugal’s close ties with China:
- Major Chinese investments in strategic Portuguese companies (EDP, REN, Fidelidade, among others).
- A warm diplomatic relationship, including President Xi Jinping’s state visit in 2018.-
- Historical links to Macau, which the US treats under the same restrictions as mainland China.
- Despite Portugal’s ban on Huawei in 5G networks and progress on the EU’s NIS2 cybersecurity directive, it wasn’t enough to sway Washington’s initial decision.
Why It Matters
While the actual volume of chip imports is low, the reputational damage is significant.
“When a map of Europe shows every country in green except Portugal, it raises questions,” said Rui Oliveira, head of the Minho Advanced Computing Center.
The restrictions may also hinder Portugal’s chances of hosting one of the five AI Gigafactories planned by the European Commission, which would require tens of thousands of chips.
What’s Next?
The Portuguese government has submitted its counterarguments, emphasizing its EU alignment and openness to US collaboration. The decision is not final and may be revised — especially with a new US administration in place. For now, all scenarios remain on the table.
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