Trump’s New Chip Deal With China Sparks Global Tech Shock

(DDM) – President Donald Trump has ignited major international debate after announcing the removal of export controls on Nvidia’s H200 artificial-intelligence chips, opening the door for approved Chinese buyers to access one of America’s most powerful AI technologies.

According to DDM correspondent, the announcement appeared in a Truth Social post where Trump detailed his direct communication with China’s President Xi Jinping about the new export policy.

Trump explained that Nvidia will now be allowed to ship its H200 chips to selected Chinese customers, but with terms designed to maintain what he described as “strong national security.”

He noted that China responded positively to the development, signaling a rare moment of cooperation between the two global rivals.

Trump added a surprising financial clause, stating that “25% will be paid to the United States of America,” a remark widely interpreted as meaning that a quarter of Nvidia’s revenue from these sales will be transferred to the US government.

READ ALSO:  BREAKING: FG And Google Launch AI Training To Transform Nigeria’s Public Service

The decision follows Trump’s meeting with Nvidia CEO Jensen Huang last week, a conversation seen by analysts as a turning point in the administration’s approach to chip exports.

Nvidia released a statement praising the announcement, describing it as a balanced and strategic approach that strengthens America’s overall technological position.

Notably, the export authorization does not include Nvidia’s more advanced and highly protected Blackwell and Rubin series chips, which remain under strict restrictions due to their advanced AI capabilities.

This limitation signals Washington’s continued caution about allowing China access to cutting-edge US technology that could be used to advance military, surveillance or strategic AI systems.

READ ALSO:  Tech Skills Or Poverty: DDM Academy Opens 2026 Survival Window

Trump also revealed that the US Department of Commerce is finalizing similar export frameworks for AMD, Intel and other American chipmakers seeking access to the lucrative Chinese AI market.

AMD declined immediate comment, while Intel refused to respond to CNN’s request for a statement.

This development comes on the heels of earlier arrangements made by the Trump administration in which Nvidia and AMD agreed to pay 15% of their chip-related revenues from China to the US government.

Trump also previously disclosed that the federal government secured a 10% ownership stake in Intel as part of broader efforts to give Washington more influence over the future of American semiconductor production.

The lifting of restrictions on H200 exports marks a major shift in US-China tech relations, coming at a time when both nations are competing to dominate the global AI race.

READ ALSO:  Meta Rolls Out Ads on WhatsApp in Major Monetisation Policy

Industry analysts warn that the move may trigger intense geopolitical reactions, especially from national security officials concerned about China gaining access to advanced processors capable of powering large-scale AI systems.

Economists, however, argue that the decision may boost US revenue streams, strengthen cooperation with major chipmakers and reduce tensions in the global semiconductor supply chain.

As the world reacts, debate continues over whether Trump’s move represents a bold economic strategy or a risky concession in a high-stakes AI power struggle.

More reactions are expected from world governments, tech analysts and financial markets as the implications of Trump’s decision unfold.

Share this:
RELATED NEWS
- Advertisment -

Latest NEWS

Trending News

Get Notifications from DDM News Yes please No thanks