nvidia

The Trump administration is taking a sharp turn in its approach to China’s tech sector. While the former strategy focused on strict bans, President Trump now proposes allowing the export of Nvidia’s powerful H200 AI chips to China—under the condition of a 25% transaction fee on each sale.
According to Trump, this policy could benefit American firms by reducing China’s reliance on domestic chip production and helping U.S. companies maintain their competitive edge. However, critics warn that such exports could enhance Beijing’s military capabilities and undermine America’s AI leadership.

Export Licenses Under Multilateral Review
Requests to export the H200 chips are currently being reviewed by four U.S. agencies—the Departments of Commerce, Defense, Energy, and State. Each agency has 30 days to provide feedback. A senior official emphasized that this would be a “deep and thorough” review, not just a box-checking exercise. Ultimately, President Trump will make the final decision, regardless of the agencies’ recommendations.

A Major Shift from Trump’s First Term
This marks a significant departure from Trump’s earlier presidency, during which he cracked down on China’s access to U.S. technology. At the time, he accused China of intellectual property theft and repurposing commercial tech for military use—allegations Beijing continues to deny.
Now, figures like White House AI czar David Sacks argue that limited chip sales could actually deter Chinese firms like Huawei from developing competitive alternatives to Nvidia and AMD.

H200 vs Blackwell Chips
Trump initially considered permitting the export of less powerful Blackwell chips but eventually pivoted toward allowing H200 sales. While the H200 lags behind the Blackwell series in some AI tasks, it remains widely used and has never been approved for sale to Chinese buyers—despite large pre-orders reportedly outpacing supply.

Congress Approves Sweeping Investment Controls
In parallel, Trump has signed legislation imposing the broadest restrictions yet on American investments in Chinese tech companies. This new law, part of the National Defense Authorization Act (NDAA), targets firms contributing to Beijing’s military and surveillance operations.
Key provisions include:
🔹 Permanent authority to monitor investments in high-risk nations like China, Russia, North Korea, Cuba, and Venezuela

🔹 Presidential power under IEEPA to block U.S. investments in sensitive Chinese companies

🔹 Mandatory reporting even for unblocked transactions

🔹 Focus on firms in China, Hong Kong, and Macau—especially state-linked and Communist Party-affiliated companies

Mixed Reactions: Strategic Move or Risky Gamble?
The Chinese Embassy in Washington condemned the legislation, saying it “overreaches the concept of national security” and threatens to disrupt normal capital flows.
In contrast, U.S. lawmakers defended the move. Senator John Cornyn said: “Every dollar invested in a Chinese company could go toward weapons that may one day be used against Americans.”
Senator Catherine Cortez Masto stressed that U.S. national security hinges on staying ahead in emerging tech: “We must ensure we maintain an edge in developing breakthrough technologies like AI and semiconductors.”

Summary: Trump is pivoting from past hardline measures to a more nuanced strategy: allowing controlled chip sales for U.S. gain while tightening investment scrutiny to safeguard American technological dominance.

#NVIDIA , #Geopolitics , #whitehouse , #USPolitics , #technews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“