Trump’s Nvidia China chip deal triggers bipartisan backlash
The post Trump’s Nvidia China chip deal triggers bipartisan backlash appeared on BitcoinEthereumNews.com. Donald Trump has approved a deal allowing Nvidia to resume selling its banned H20 AI chips to China if the U.S. government gets 15% of the revenue from those sales. The agreement also applies to AMD, making it one of the rare times U.S. export controls have been tied directly to a financial payment. The decision reverses an earlier ban his own administration put in place and adds a new dimension to U.S. national security policy, one where access to restricted technology can come with a price tag. For decades, Washington blocked sales of sensitive technology to foreign countries based only on security concerns, with no room for negotiation. If a product was restricted, companies could not buy their way into an exception. Trump not only made the H20 deal but also said he would consider letting Nvidia sell a reduced-performance version of its high-end Blackwell chips to China. The H20 ban, imposed months ago, was lifted in July as part of discussions with Beijing over rare earth minerals. Lawmakers question national security impact Both Republicans and Democrats in Congress criticized the move, warning it risks setting up what they see as a “pay-for-play” system for sensitive technology exports. John Moolenaar, chair of the House Select Committee on China, said export controls protect national security and “we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities.” Raja Krishnamoorthi, the committee’s top Democrat, said charging a fee sends the message that “American national security principles are negotiable for the right fee.” The administration argues the security risk is low because the H20 chip was already widely sold in China before the ban. Commerce Secretary Howard Lutnick told CNBC the H20 is Nvidia’s “fourth-best chip” and said it benefits…
The post Trump’s Nvidia China chip deal triggers bipartisan backlash appeared on BitcoinEthereumNews.com.
Donald Trump has approved a deal allowing Nvidia to resume selling its banned H20 AI chips to China if the U.S. government gets 15% of the revenue from those sales. The agreement also applies to AMD, making it one of the rare times U.S. export controls have been tied directly to a financial payment. The decision reverses an earlier ban his own administration put in place and adds a new dimension to U.S. national security policy, one where access to restricted technology can come with a price tag. For decades, Washington blocked sales of sensitive technology to foreign countries based only on security concerns, with no room for negotiation. If a product was restricted, companies could not buy their way into an exception. Trump not only made the H20 deal but also said he would consider letting Nvidia sell a reduced-performance version of its high-end Blackwell chips to China. The H20 ban, imposed months ago, was lifted in July as part of discussions with Beijing over rare earth minerals. Lawmakers question national security impact Both Republicans and Democrats in Congress criticized the move, warning it risks setting up what they see as a “pay-for-play” system for sensitive technology exports. John Moolenaar, chair of the House Select Committee on China, said export controls protect national security and “we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities.” Raja Krishnamoorthi, the committee’s top Democrat, said charging a fee sends the message that “American national security principles are negotiable for the right fee.” The administration argues the security risk is low because the H20 chip was already widely sold in China before the ban. Commerce Secretary Howard Lutnick told CNBC the H20 is Nvidia’s “fourth-best chip” and said it benefits…
What's Your Reaction?
