In a significant shift in the technological war between Washington and Beijing, US President Donald Trump announced a pivotal agreement with his Chinese counterpart, Xi Jinping. This agreement allows the American technology giant, Nvidia, to resume exporting its most advanced artificial intelligence chips to the Chinese market, subject to specific security controls.
Details of the advertisement via “Truth Social”
Trump revealed details of the agreement in a post on his social media platform, Truth Social, explaining that he had officially informed the Chinese president that the United States would allow Nvidia to ship its H200 series products to China. The US president indicated that these exports would not be entirely open, but rather limited to "approved customers" in China and other countries. He emphasized that the process would be subject to strict conditions to ensure the "sustainability of US national security," meaning there would be oversight mechanisms in place to guarantee that these technologies are not diverted for hostile military purposes.
The context of the "chip wars" and historical background
This decision comes amid what is known globally as the “chip war,” which has intensified in recent years. The US administration had previously imposed broad restrictions to prevent China from accessing advanced semiconductors and their manufacturing equipment, justifying this with concerns that the Chinese military would use these technologies to develop smart weapons and sophisticated surveillance systems. Nvidia chips, specifically the H100 and H200 series, are considered the backbone of the generative artificial intelligence revolution, making them a strategic commodity whose commercial value transcends mere commercial significance, transforming them into a geopolitical bargaining chip.
The importance of H200 chips and their technological impact
The H200 chips are particularly significant as they represent the latest and most powerful generation of AI data processing, boasting faster memory and greater capacity than their predecessors. Allowing the export of this technology to China would enable Chinese companies to catch up in the development of Large Language Models (LLMs), something Washington has been trying to delay. However, the requirement of "approved customers" suggests that Washington is attempting to strike a balance: economic gain while trying to mitigate security risks.
Expected economic and geopolitical impact
Economically, this announcement represents a lifeline for the US technology sector, which has been severely impacted by the loss of the massive Chinese market. The decision is expected to have an immediate positive effect on the shares of Nvidia and its affiliated companies, as China is a major consumer of these chips. Geopolitically, the agreement reflects Trump's transactional approach, demonstrating his willingness to ease some technological restrictions in exchange for trade gains or broader political understandings with Beijing. This could lead to a new phase of "competitive coexistence" rather than the complete break that had seemed imminent.
