This week, President Donald Trump made a significant announcement, permitting Nvidia to sell its advanced H200 chips to China. This decision marks a reversal of previous policies from the Biden administration, which Trump claims hindered innovation and negatively impacted American workers.
The approval of Nvidia's chip sales is seen as a victory for the company and its supporters within the administration, while it contradicts the efforts of Washington's China hawks who aimed to restrict China's access to essential technology for advanced AI development. However, it is important to note that Nvidia's more advanced B200 chips remain restricted from sale.
This policy shift signifies a notable change from the chip control strategies initiated during Trump's earlier presidency. The former president's administration began enforcing bans on the supply of US-origin components to Chinese tech firms like ZTE and Huawei in 2019 due to concerns about their ties to the Chinese government and military.
Experts suggest that these earlier actions prompted Chinese leaders to reconsider their reliance on US technology, as they recognized vulnerabilities within their chip supply chains. While Trump initiated these restrictions, the Biden administration continued to enhance them, broadening the scope of limitations on Chinese technology companies.