Trump Shifts China Tech Policy

The Trump administration is reversing the Biden administration's export control strategy, which aimed to maintain a significant US lead over China in advanced technologies. This shift involves relaxing restrictions on chip sales to China, potentially opening avenues for companies like Nvidia and AMD to resume supplying certain technologies.

While some limitations may persist, the change suggests a possible "tech grand bargain" between the US and China. The US Commerce Department has reportedly informed Nvidia that it can again sell its H20 AI accelerator to China. AMD has also received similar clearance for exporting less advanced AI processors. The strategy aims to encourage Chinese developers to become reliant on US technology, ensuring continued market dominance while safeguarding cutting-edge innovations.

This policy adjustment has sparked debate, especially among those advocating a tougher stance against China. It also precedes anticipated meetings and a potential summit between President Trump and President Xi Jinping, hinting at broader negotiations. Trump seeks substantial Chinese purchases of US goods, fentanyl precursor controls, TikTok resolution, and guarantees against weaponising rare-earth minerals. China, in turn, desires the removal of US levies and eased investment restrictions.