The US government has relaxed its export controls on tech exports to China, allowing semiconductor giant Nvidia to sell 15% of its AI chip sales to Beijing. The move is seen as a significant shift in the country’s global tech policy and comes amid concerns over national security.
Under previous administrations, including the first Trump administration, export controls were used to limit China’s access to advanced US technology. However, President Donald Trump has now agreed to permit Nvidia to resume exports of its H20 chips to China, with a 15% revenue cut for the US government.
National security experts have condemned the move, citing concerns over the potential risks of Chinese AI development. “Export controls are a frontline defense in protecting our national security,” said House Select China Chair John Moolenaar (R-Mich.).
The decision has also raised questions about the constitutionality of Trump’s actions under the US Export Control Reform Act. A former Commerce Department official, Chris Padilla, stated that the deal appears to violate the law.
In contrast, Nvidia CEO Jensen Huang has welcomed the move, arguing that it is more strategic for the US to sell chips to China than block them. “America’s AI tech stack can be the world’s standard if we race,” he said.
Source: https://www.politico.com/newsletters/digital-future-daily/2025/08/11/uncle-sam-takes-a-cut-of-american-tech-profits-00503838