Foreign Affairs

Trump Admin Moves To Give China Leg Up In Key Arms Race

(Screenshot/White House/YouTube)

President Donald Trump announced Monday that his administration will allow U.S. chipmaker NVIDIA to ship its advanced H200 artificial intelligence processors to approved buyers in China and other countries.

In a post on Truth Social, Trump said he personally informed Chinese President Xi Jinping of the decision, adding that Xi reacted positively. Under the arrangement, Trump said a 25% payment will go to the United States, which he argued will benefit taxpayers while supporting domestic jobs and manufacturing.

“I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump wrote. “President Xi responded positively! $25% will be paid to the United States of America. This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers.”

Trump added that the Biden administration forced major U.S. tech firms to spend billions developing so-called degraded chips to comply with export restrictions.

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“The Biden Administration forced our Great Companies to spend BILLIONS OF DOLLARS building ‘degraded’ products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker,” Trump continued. “That Era is OVER! We will protect National Security, create American Jobs, and keep America’s lead in AI. NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal. My Administration will always put America FIRST.”

The Biden-Harris administration in December 2024 imposed new restrictions barring exports of certain advanced chips and semiconductor equipment to China, citing national security concerns. The Commerce Department’s Bureau of Industry and Security said the rules aim to curb Beijing’s ability to produce semiconductors used in weapons systems, artificial intelligence, and advanced computing, adding 140 Chinese firms to a restricted trade list.

Washington and Beijing have battled for years over dominance in cutting-edge semiconductor technology that powers modern computing. China escalated that push in August 2024 by announcing limits on antimony exports, a material vital to the manufacture of some weapons systems.

Beijing has tightened control inside its own economy as well, directing state-owned companies through a 2022 order known as Document 79 to regularly report their progress in swapping out foreign software for domestic products. The Wall Street Journal reported that critics commonly describe the campaign to phase out U.S. technology as “Delete A,” shorthand for “Delete America.”

(Featured Image Media Credit: Screenshot/White House/YouTube)