Trump Says He’ll Allow China-Nvidia Deals Except For ‘Most Advanced’ Blackwell Chips

Key Concepts:

• AI Chips
• Export Controls
• Nvidia
• Blackwell Chips
• US-China Relations
• Market Capitalization
• Arbitrator/Referee Role

Nvidia and China AI Chip Deals: Trump's Stance

Former President Donald Trump announced on Sunday that he would permit Nvidia and Beijing to engage in deals concerning AI chips, with the crucial caveat that Nvidia's most advanced semiconductors, specifically the Blackwell chips, would not be permitted for sale to China. This declaration follows prior indications from Trump suggesting an openness to discussing export controls on these leading-edge Nvidia chips destined for China.

Details of the Announcement

During a "60 Minutes" interview aired on CBS, Trump was directly questioned by interviewer Norah O'Donnell regarding China's interest in acquiring the world's most advanced semiconductors, particularly Nvidia's flagship Blackwell AI chips. Trump's response was definitive: "No, we won't do that." However, he elaborated that he would allow Beijing to "deal with Nvidia," acknowledging Nvidia as the "prime company in the world for that" technology. He reiterated, "We will let them deal with Nvidia, but not in terms of the most advanced."

Context and Previous Discussions

Following a face-to-face meeting between Trump and Chinese leadership in South Korea, Trump informed reporters that there were no direct discussions about Blackwell chips. He stated, "We did discuss chips and they are going to be talking to Nvidia and others about taking chips and we make great chips." Trump indicated his intention to "have a word with Nvidia CEO Jensen Wong," and that subsequent discussions would be between China and Nvidia, with the U.S. acting as "sort of the arbitrator or the referee."

Market Impact and Nvidia's Position

Nvidia's shares saw a 1.4% increase in pre-market trading on Monday. The previous week, Nvidia achieved a significant milestone, becoming the first company to surpass a $5 trillion market capitalization. This surge occurred after Trump signaled his willingness to discuss export controls on advanced Nvidia chips aimed at China during his meeting with Chinese counterpart Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea.

Nvidia's CEO, Jensen Huang, also commented on the potential sale of Blackwell chips to China during the APEC Summit. He expressed optimism for future sales, stating, "I think it's really good for America and it's really good for China that Nvidia could participate in the Chinese market." Huang also acknowledged that the ultimate decision rested with President Trump.

Conclusion

Former President Trump has established a clear, albeit nuanced, policy regarding Nvidia's AI chip sales to China. While allowing for general chip transactions, he has drawn a firm line against the export of Nvidia's most advanced technologies, such as the Blackwell chips. This approach positions the U.S. as a regulatory overseer in these high-stakes technological dealings, with significant implications for both the semiconductor industry and international relations. The market has reacted positively to this clarification, reflecting investor confidence in Nvidia's continued growth.