In recent years, one of China’s biggest requests of American officials has been that the United States relax its strict controls on advanced artificial intelligence chips, measures that were put in place to slow Beijing’s technological and military gains.
Last week, the Trump administration did just that, as it allowed the world’s leader in A.I. chips, the U.S.-based Nvidia, to
begin selling
a lower-level but still coveted chip known as H20 to China.
The move was a dramatic reversal from three months ago, when President Trump himself
banned China
from accessing the H20, while also imposing triple-digit tariffs on Beijing. That set off an economically perilous trade clash, as China retaliated by clamping down on exports of
minerals and magnets that are critical to American factories
, including automakers and defense manufacturers.
China’s decision to cut off access to those materials upended the dynamic between the world’s largest economies. The Trump administration, which came into office determined to bully China into changing its trade behavior with punishing tariffs, appeared to realize the perils of that approach. Now, the administration has resorted to trying to woo China instead.
Officials throughout the government say the Trump administration is putting more aggressive actions on China on hold, while pushing forward with moves that the Chinese will perceive positively. That includes the reversal on the H20 chip.
The H20 decision was primarily motivated by top Trump officials who agreed with Nvidia’s arguments that selling the chip would be better for American technology leadership than withholding it, people familiar with the move say.
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