BEIJING — In a recent move that may reshape tech dynamics, U.S. President Donald Trump has permitted Nvidia to export a more advanced artificial intelligence chip to China, a decision analysts believe will substantially enhance Beijing's technological prowess.
This development indicates a shift in policy, given that the U.S. has tightened restrictions on Chinese access to cutting-edge semiconductors in recent years. Despite these measures, Chinese firms like DeepSeek have managed to develop AI models comparable to their American counterparts, often operating at lower costs.
According to Rush Doshi, an assistant professor at Georgetown University and former deputy senior director for China and Taiwan affairs with the National Security Council, "Compute is our main advantage." Doshi shared on social media platform X that China already enjoys advantages in areas such as electrical power and engineering talent. "By giving this up we increase the odds the world runs on Chinese AI," he warned.
On Monday, Trump announced via his Truth Social platform that Nvidia could ship a more sophisticated chip, the H200, to "approved customers in China" and other nations, with the stipulation that the U.S. receives a 25% cut. This represents an increase from the previous 15% rate established over the summer. Trump clarified that Nvidia's next-generation Blackwell and Rubin chips are excluded from the China arrangement.
Trump criticized the previous administration, stating, "The Biden administration forced our Great Companies to spend BILLIONS OF DOLLARS building 'degraded' products that nobody wanted, a terrible idea that slowed innovation, and hurt the American Worker." He pointed out that Nvidia had developed a less powerful chip, the H20, to align with U.S. regulations but had to cease shipments to China in April.