It was the Trump administration’s decision to permit Nvidia to regain sales of one of its more powerful artificial intelligence processors to Chinese buyers that sparked a fierce debate in Washington, underscoring the deep tensions between national security policy and economic strategy.
It represents one of the most significant reversals of U.S. technology export controls in recent history, as the semiconductor giant has been allowed to export its H200 artificial intelligence chips to China, which are the second most advanced chips in the world.
The decision was swiftly criticized by China hardliners and Democratic lawmakers, who warned that Beijing could exploit the advanced computing capabilities of the country to speed up military modernization and surveillance.
It was concluded by administration officials, however, that a shift was justified after months of intensive negotiations with industry executives and national security agencies. Among the proposed measures, the U.S. government agreed that economic gains from the technology outweighed earlier fears that it would increase China’s technological and military ambitions, including the possibility that the U.S. government would receive a share of its revenues resulting from the technology.
A quick response from the financial markets was observed when former President Donald Trump ann
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