In recent years, one of China’s biggest requests of U.S. 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 AI chips, 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 U.S. President Donald Trump 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.
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