Washington has adjusted its approach to China’s technological development by permitting Nvidia and AMD to sell advanced AI chips to China, in exchange for a 15% share of their revenue. This shift signifies a change from strict export controls to a more flexible bargaining strategy. The U.S. is facing a narrowing lead over China in AI and semiconductors, resulting in complaints from U.S. companies. Meanwhile, China is countering with its own export controls, creating significant pressure on Washington.
Washington's strategy to limit China's technological development now includes allowing Nvidia and AMD to sell advanced AI chips to China for a revenue share.
The U.S. holds a diminishing lead over China in AI and semiconductors, with analysts estimating only a one to two-year advantage at most.
China is adopting U.S. tactics of export controls, leveraging its rare earth metals to pressure Washington and its allies.
The Trump administration's deal with Nvidia reflects a broader strategy in trade negotiations with China, indicating a significant shift in export control policy.
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