US President Donald Trump has agreed to allow American companies like Nvidia and Advanced Micro Devices to sell advanced AI chips to Chinese firms, provided they give the US government a 15% cut of the revenue. This deal has raised concerns that Trump is prioritizing business interests over national security.
In 2022, then-President Joe Biden prohibited the export of advanced AI chips to China, citing national security concerns. However, Trump’s decision to allow the sale of these chips indicates that he may be willing to compromise on this issue. Experts have warned that this move could imperil American security and advantage in artificial intelligence.
Trump has argued that the H20 chip, one of Nvidia’s most advanced products, is not a high-priority target for Chinese companies. However, China’s demand for the chip is high, and Beijing has been pushing to remove US export controls on advanced chips. The deal also benefits Trump personally, as he will receive material benefits from the sale.
The move has sparked concerns that Trump is prioritizing business interests over national security. Despite this, Trump justifies his decision by pointing out that the H20 chip is not among Nvidia’s most high-powered products. Nevertheless, the demand for the chip appears to have alarmed Chinese authorities, who prefer local companies use homemade alternatives.
As Beijing continues to push for US export controls on advanced chips, this deal may signal a shift in Trump’s approach to dealing with China. The implications of this move for national security and American interests remain uncertain, but one thing is clear: the US-China trade agreement has raised significant concerns about the priorities of the Trump administration.
Source: https://www.theatlantic.com/ideas/archive/2025/08/china-us-trade-deal-ai-chips/683855