**US Eases Tech Export Controls to China with Nvidia Deal**
In a notable shift in technology export regulations, former US President Donald Trump announced on Monday that Nvidia will be allowed to sell its H200 artificial intelligence processors to “approved customers” in China and other regions, contingent upon the US receiving a 25% share of the revenue from these sales. This announcement, made via a post on Truth Social, represents the most significant easing of US chip export restrictions to China since the Biden administration imposed tighter controls in 2022 due to national security concerns.
Trump emphasized that shipments would be limited to “approved customers” and indicated that other chip manufacturers, including Intel and Advanced Micro Devices (AMD), would also qualify under this arrangement. He stated, “We will protect National Security, create American Jobs, and keep America’s lead in AI.” He also noted that Nvidia’s US customers are progressing with their advanced Blackwell chips, which are not included in this deal.
According to Bloomberg, the White House has attached specific conditions to this agreement. A 25% tariff will be imposed when the chips are shipped from Taiwan to the US for inspection by the Commerce Department’s Bureau of Industry and Security as part of a security review. Following this inspection, the chips will be sent to customers in China. Trump mentioned that Chinese President Xi Jinping had responded positively to the proposal, asserting that it would bolster American jobs, enhance US manufacturing, and benefit taxpayers.
The new revenue-sharing requirement marks an increase from the 15% arrangement that Nvidia and AMD accepted in August for their chips destined for China. Around that time, reports indicated that Beijing had advised Chinese companies against using Nvidia’s H20 processor, a modified, lower-performance model designed to comply with US restrictions.
The H200 processor is more advanced than the H20 but still falls short of Nvidia’s top-tier systems. Analysts suggest that including the H200 in this new framework reflects Washington’s strategy to allow US companies to engage in the expansive Chinese AI market while maintaining oversight over high-end technologies.
**FAQ**
**What are the implications of the Nvidia deal for US-China tech relations?**
The Nvidia deal signifies a potential thaw in US-China tech relations, allowing for increased collaboration while still enforcing revenue-sharing and oversight measures to address national security concerns.
