The United States government has made a new deal about AI chips. Under this deal, companies like Nvidia and AMD can sell some of their older AI chips to China. But there is a condition: 15% of the money from these sales must go back to the U.S. government.
This decision is big news in both the U.S. and China because AI chips are very powerful technology. They are used for artificial intelligence, defense, and supercomputers.
Why This Deal Matters
AI chips are like the “brain” of modern technology. Without them, AI systems like ChatGPT, Google Gemini, or self-driving cars cannot work.
The U.S. and China are in a technology race. Both countries want to be leaders in AI. In the past, the U.S. government stopped companies like Nvidia and AMD from selling advanced AI chips to China. The reason was national security—the U.S. did not want China to use these chips for military or spying purposes.
Now, under former President Trump’s new tariff and trade policy, the U.S. is allowing older versions of chips to be exported. This means China can still get some AI chips, but not the most advanced ones.
Why Investors Care
For U.S. companies like Nvidia and AMD, China is a huge market. Many Chinese businesses need AI chips for smartphones, research, and industry. By opening exports again, these companies can make more money.
Investors in the United States see this as good news for company earnings. But some experts say it is risky because China may still use the chips in ways that could harm U.S. interests.
National Security Concerns
Some people in the U.S. are worried about this deal. They ask questions like:
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Could China use these AI chips in the military?
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Will this make U.S. technology weaker in the future?
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Is the 15% payment enough to protect America?
The U.S. government says the chips being sold are older and less powerful. The most advanced chips are still blocked from export.
Impact on U.S.–China Relations
This deal shows how complex the relationship is between the United States and China. On one hand, they are economic partners and trade billions of dollars every year. On the other hand, they are also rivals in technology and security.
The AI chip deal is a middle step: it gives U.S. companies a chance to earn money but also tries to control risks.
Trump’s Tariff Policy
Former President Trump is known for his tough trade rules. He placed high tariffs on many products from China. But now he is also looking at exports—things the U.S. sells to other countries.
This AI chip export deal is part of that bigger trade policy. Trump wants the U.S. government to get a share of the money when U.S. companies sell important technology.
What It Means for Technology
For the technology world, this deal is very important. It shows that AI chips are not just normal products—they are strategic assets. They are as important as oil, steel, or weapons in the past.
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For the U.S. – It means balancing profit with national security.
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For China – It means getting some AI power, but not the best.
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For companies – It means more money but also more rules.
Risks of the Deal
There are still risks in this decision:
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China could copy the chips – Once they get older AI chips, they may try to build their own versions.
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Other countries may complain – Europe or Japan may ask why they do not get the same deals.
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Security leaks – Even older AI chips can still be powerful in cyber or defense use.
Expert Opinions
Some experts say this deal is smart because it lets U.S. companies earn money while keeping advanced chips safe.
Other experts say it is dangerous because even old AI chips can still give China power in sensitive areas like defense or spying.
For more details, you can read technology trade news on The Guardian and TechCrunch.
Final Words
The U.S.–China AI chip export deal is a big story in 2025. It shows how technology, trade, and politics are all connected.
For the U.S., the key challenge is making money without losing security. For China, the challenge is catching up in AI technology. And for companies like Nvidia and AMD, the challenge is keeping investors happy while following new rules.
The world will watch closely how this deal works in the coming months. If successful, it could shape the future of technology trade between the United States and China.