The US Treasury is considering replicating the Nvidia and AMD agreement regarding AI chip sales to China across other sectors. The current agreement allows these companies to sell lower-end AI chips to China, with the stipulation that 15% of the revenue is remitted to the US government.
Treasury Secretary Scott Bessent views this arrangement as a potential framework for future trade deals. The agreement aims to balance the need to control the export of advanced technology with the economic interests of US companies. By allowing the sale of less sophisticated chips, Nvidia and AMD can maintain a presence in the Chinese market while still adhering to US export restrictions.
If adopted more broadly, this model could significantly impact how the US approaches trade with China, particularly in sectors involving advanced technologies. It would allow the US government to directly benefit from sales in restricted markets, potentially offsetting the economic disadvantages of export controls.
