Increased Role of US Government in Export Activities Under Consideration
The U.S. Treasury Secretary, Scott Bessent, recently discussed the potential expansion of such agreements with American broadcaster Bloomberg TV. The agreements in question involve the U.S. government entering into a partnership with chip giants Nvidia and AMD, where they pay fees for licenses to export advanced AI chips to China.
This development follows the tightening of rules for semiconductor sales to China in the spring, and it could have significant implications for U.S.-China trade relations. The agreement with Nvidia and AMD may have been influenced by negotiations with the company's CEO, Jensen Huang, who was able to persuade the U.S. government for a change in the policy.
The agreement is noteworthy due to its potential implications for other industries. U.S. Treasury Secretary Scott Bessent has suggested the possibility of expanding such agreements to other sectors, including battery technology, semiconductor manufacturing, and advanced green-tech industries. These sectors, like semiconductors, electric vehicle batteries, drones, and advanced computing devices, could also become targets for export licensing fees or tariffs as part of trade policies focused on curbing China’s technological advances.
The agreement serves as a precedent for potential future agreements in other industries. Initially, the U.S. government prevented Nvidia from delivering its AI chips to China due to tightened rules. However, under the new agreement, the US government now allows for the export of these chips, receiving a 15% share of sales. This concession is significant given the initial restrictions on semiconductor sales to China.
It is worth noting that the agreement between Nvidia and AMD is currently unique. President Donald Trump initially demanded a 20% share from Nvidia CEO Jensen Huang for sales to China. However, the final agreement reflects a 15% share. The potential expansion of the agreement to other industries could occur over time.
The agreement between Nvidia and AMD for the export of advanced AI chips to China could potentially serve as a precedent for future negotiations with other companies in other industries. This development marks a significant shift in U.S.-China trade relations and could have far-reaching implications for the global technology landscape.
[1] Ministry of Commerce and Ministry of Technology, China [4] Semiconductor Industry Association [5] Reuters
Read also:
- Show a modicum of decency, truly
- Latest updates for July 31: Introduction of Ather 450S with expanded battery, unveiling of new Tesla dealership, and additional news
- VinFast's debut EV plant in India, Tata Harrier EV distribution starts, next-gen Mahindra Bolero sightings caught on camera
- Tesla-powered residences in Houston create a buyers' frenzy
