President Trump seeks a trade agreement with China to demonstrate the success of his tough tactics. The U.S. and China agreed to extend negotiations, avoiding additional tariffs. Trump announced a deal allowing American companies to sell certain AI chips to China, reversing previous export restrictions if a revenue cut is paid to the government. Experts warn this could jeopardize American security interests. While the arrangement may provide financial benefit, it also could be seen as a concession to Beijing, which has long sought the removal of U.S. export controls.
Trump confirmed the details of an unusual arrangement effectively reversing that move: The American companies Nvidia and Advanced Micro Devices will be allowed to sell certain chips to Chinese firms if the companies give the U.S. government a 15 percent cut of the revenue from these sales.
In essence, Trump sold exemptions to technology-export controls that many experts consider crucial to protecting American security.
Matt Pottinger, who was Trump's deputy national security adviser during the president's first term, and 19 other policy professionals urged the administration not to allow the sale of Nvidia's H20 chip to China, calling the decision a "strategic misstep that endangers the United States' economic and military edge in artificial intelligence."
Trump may see the arrangement not as a national-security issue but as a business deal: There's a lot of money to be made selling chips to China, and now the U.S. government will materially benefit.
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