China is reportedly seeking the easing of US export restrictions on AI chips as part of a potential trade agreement. This request comes ahead of a possible summit between President Trump and President Xi. The US has previously placed curbs on advanced chip exports to China, aiming to slow Beijing's progress in AI and defence. However, these restrictions have impacted US companies' access to the significant Chinese semiconductor market.
Nvidia, for example, had to tailor its H20 chip specifically for the Chinese market to comply with US export controls. The US Commerce Department has begun issuing licenses to Nvidia for H20 chip exports to China, removing a hurdle for the company. Previously, restrictions led to the suspension of sales and support to Chinese clients, affecting stock prices. Lifting restrictions could allow companies to resume operations and benefit from access to China's semiconductor market.
Easing these restrictions could be a pivotal moment in the US-China tech relationship, potentially reshaping global supply chains and influencing investment strategies. However, exports of Nvidia's other advanced AI chips to China remain restricted.
