WASHINGTON: President Donald Trump said on Monday (Dec 8) he had reached an agreement with Chinese President Xi Jinping to allow US chip giant Nvidia to export advanced artificial intelligence chips to China.
The announcement marks a significant shift in US export policy for advanced AI chips, which Joe Biden’s administration had heavily restricted over national security concerns about Chinese military applications.
In a post on his Truth Social platform, Trump said he had informed Xi that Washington would permit Nvidia to ship its H200 products to “approved customers in China, and other countries, under conditions that allow for continued strong National Security”.
“President Xi responded positively! US$25 per cent will be paid to the United States of America,” Trump wrote, without providing further details on how the payment mechanism would work.
Trump criticised his predecessor’s approach, saying it “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”.
This referred to the previous administration’s requirement for chip companies to create modified, less powerful versions specifically for the Chinese market.
These chips had reduced capabilities – lower processing speeds, for example – to comply with export control regulations.
The president said his decision aims to “support American Jobs, strengthen US Manufacturing, and benefit American Taxpayers”.
Trump emphasised that Nvidia’s most advanced chips – the Blackwell series and forthcoming Rubin processors – are not included in the agreement and remain available only to US customers.
