Donald Trump Eases Restrictions, Allows Nvidia to Sell Advanced AI Chips to China with Licensing Fees
In a significant shift in US technology export policy, former President Donald Trump has opened the door for American chipmakers Nvidia and AMD to sell advanced artificial intelligence (AI) chips to China, provided they pay licensing fees. The move, reported by the Financial Times on August 11, 2025, marks a notable change in the US’s approach to restricting China’s access to cutting-edge semiconductor technology.
The Trump administration struck an agreement with Nvidia and AMD, two of America’s leading chip manufacturers, permitting the export of selected high-performance AI chips to Chinese firms under a licensing scheme. This licensing fee arrangement is intended to maintain some regulatory oversight and generate revenue while allowing Chinese technology companies to access hardware critical for AI development.
Critics argue that the deal sets a potentially dangerous precedent by easing controls on technology exports that could enhance China’s AI capabilities, possibly threatening US technological leadership and national security. Supporters claim that this approach balances economic interests with strategic concerns, enabling American companies to continue growing their business in China under controlled circumstances.
Nvidia and AMD have historically faced strict export restrictions limiting the sale of their most advanced GPUs and AI chips to China, a policy driven by concerns over military and surveillance applications. This new framework introduces a fee for licensing the export of certain chips, aiming to manage risks while permitting commercial transactions.
Industry experts anticipate that the move could help US chipmakers regain some of the market share lost in China due to previous export constraints. It may also encourage increased technological collaboration and innovation in the AI sector globally. However, there remain concerns over how effectively licensing fees will control chip utilization and prevent unauthorized military use.
The agreement comes amid broader tensions between the US and China over technology competition, trade, and national security. It reflects evolving strategic calculations in Washington as policymakers seek to balance technological dominance with economic pragmatism in a rapidly changing global landscape.
While details of the licensing mechanism and fee structure have not been fully disclosed, the development illustrates a nuanced approach that differs from the stringent outright bans on advanced technology exports seen in prior years.
As AI continues to advance as a critical domain of international competition, the Trump administration’s decision underscores the challenges of managing complex technology transfer risks while supporting American businesses in competitive global markets.