Trump's Administration Eases Restrictions on AI Chip Sales to China

Donald Trump has cleared the way for Nvidia to begin selling its powerful AI computer chips to China, a significant policy shift after the US had previously prohibited such sales due to national security concerns.

Trump announced on Truth Social that he informed President Xi Jinping that the US would allow Nvidia to ship its H200 products to approved customers in China, stating that the Department of Commerce is finalizing the details.

This decision is seen as a victory for Nvidia and its CEO, Jensen Huang, who has lobbied extensively for the opening of sales. Trump mentioned that the US would receive 25% of the proceeds from these sales, an increase from a previously agreed 15% cut.

The move has drawn criticism from some lawmakers, including Senators Elizabeth Warren and Andy Kim, who expressed concerns that selling these chips could enhance China's surveillance and military capabilities.

They urged the Commerce Secretary to reconsider the decision, warning against compromising national security. Huang has been a close ally of Trump, attending various events, and has committed to investing $500 billion in AI infrastructure in the US over the next four years.

The decision comes amidst a backdrop of shifting dynamics in US-China technology trade relations, as China had earlier imposed its own restrictions on importing Nvidia chips, citing national security concerns.

Trump's announcement signaled a stark contrast to the Biden administration's approach, which had sought to limit technology exports to China to bolster US competitiveness and security.