President Donald Trump has brokered a controversial deal allowing Nvidia and AMD to sell advanced AI chips to China, requiring them to pay 15% of their revenue from these sales to the U.S. government, breaking new ground in international trade agreements.
The arrangement has ignited intense debates over national security, as concerns mount about the potential risks associated with transferring sensitive technology to China, raising alarms among lawmakers and industry experts alike.
In a show of resistance, Chinese authorities have urged local firms to steer clear of Nvidia's H20 chips, citing fears of security vulnerabilities and backdoor access, complicating the landscape for U.S. tech companies seeking to re-enter the market.
Wall Street has reacted with volatility, as investor apprehension grows over the implications of this export deal, reflecting a broader unease in the tech sector amid ongoing U.S.-China tensions.
This unprecedented revenue-sharing model is reshaping the future of U.S. trade policies in the high-tech sector, highlighting a departure from traditional export practices and sparking questions about the long-term ramifications for the global semiconductor supply chain.
As negotiations evolve, the deal serves as a critical flashpoint in the ongoing geopolitical chess game between the U.S. and China, emphasizing the strategic importance of technology and innovation in the 21st century.
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