FX.co ★ U.S. Clears Nvidia Chip Sales to China to Maintain AI Edge

White House National Economic Adviser Kevin Hassett has disclosed that the Trump administration strategically permitted the export of Nvidia's H20 AI chips to China. This decision was taken as part of an effort to ensure the United States retains its leadership in advanced chip technology. Discussing the move, Hassett explained, “President Trump and his team opted to allow the NVIDIA chips to be shipped,” aiming to prevent China from innovating and potentially overtaking the U.S. in chip development. Nvidia has recently announced that it is in the process of applying for licenses from the U.S. government, anticipating approval to recommence H20 chip sales to China soon. While the H20 is the most sophisticated chip that Nvidia is currently allowed to offer in China, it does possess reduced computing capabilities compared to versions available in the global market due to export restrictions imposed by both the Trump and Biden administrations. Hassett highlighted the strategic implications by stating, “If China is not purchasing chips from us, they will start innovating and producing their own.” He underscored the crucial need to maintain a competitive edge in the global AI chip industry.