US President Trump has announced that American tech giant NVIDIA can now sell its high-end AI chips to "approved customers" in China, sparking controversy among lawmakers. The decision comes as the US Commerce Department will collect a 25% tariff on those sales.
According to Trump's statement, he informed China's President Xi Jinping of the new agreement and received a positive response. However, the move has been criticized by several Democratic senators who claim it's a "colossal economic and national security failure" that will aid China's industry and military.
NVIDIA, which designs more powerful chips than those allowed under export restrictions, was previously shut out of the Chinese market due to concerns that its technology would be stolen. However, the company can now sell its H200 processors to approved commercial customers vetted by the Department of Commerce.
The US administration has taken a balanced approach, allowing NVIDIA to keep some business in China while maintaining strict controls on sensitive technology exports. The 25% tariff on AI chip sales is higher than the previously suggested rate of 15%.
Industry insiders say that even without access to high-end chips like Blackwell B200, $1 billion worth of those and other NVIDIA chips have made their way to China through black market channels.
NVIDIA's advanced technology remains out of reach for Chinese companies, according to AI chip experts. Huawei, currently the most advanced company in developing AI technology, recently unveiled a three-year plan to catch up with American giants like NVIDIA and AMD.
Despite this, Trump remains optimistic that his approach will help protect America's interests in the tech sector. The US will continue to scrutinize sales of sensitive chips to China, but for now, it appears that American companies like NVIDIA can keep some business in the lucrative Chinese market.
According to Trump's statement, he informed China's President Xi Jinping of the new agreement and received a positive response. However, the move has been criticized by several Democratic senators who claim it's a "colossal economic and national security failure" that will aid China's industry and military.
NVIDIA, which designs more powerful chips than those allowed under export restrictions, was previously shut out of the Chinese market due to concerns that its technology would be stolen. However, the company can now sell its H200 processors to approved commercial customers vetted by the Department of Commerce.
The US administration has taken a balanced approach, allowing NVIDIA to keep some business in China while maintaining strict controls on sensitive technology exports. The 25% tariff on AI chip sales is higher than the previously suggested rate of 15%.
Industry insiders say that even without access to high-end chips like Blackwell B200, $1 billion worth of those and other NVIDIA chips have made their way to China through black market channels.
NVIDIA's advanced technology remains out of reach for Chinese companies, according to AI chip experts. Huawei, currently the most advanced company in developing AI technology, recently unveiled a three-year plan to catch up with American giants like NVIDIA and AMD.
Despite this, Trump remains optimistic that his approach will help protect America's interests in the tech sector. The US will continue to scrutinize sales of sensitive chips to China, but for now, it appears that American companies like NVIDIA can keep some business in the lucrative Chinese market.