In a striking pivot on trade and national security policy, the Trump administration has brokered a deal with chipmakers Nvidia and AMD
allowing them to resume selling advanced AI chips to China in exchange for a 15% cut of the revenue paid directly to the U.S. government.
The unprecedented arrangement, confirmed by President Trump on Monday, upends years of bipartisan efforts to restrict China’s access to sensitive American technology.
The move has drawn swift and sharp criticism from trade and national security experts, who warn it sets a “dangerous precedent” and raises serious constitutional questions.
“These are national security restrictions on sensitive technology, and now we are basically putting them up for sale where major corporations can pay a fee and get rid of them,”
said Liza Tobin, who served as China director on the National Security Council under both Presidents Trump and Biden.
President Trump defended the transactional nature of the deal, explaining his direct negotiations with Nvidia. “I said, If I’m going to do that
I want you to pay us as a country something because I’m giving you a release,” Trump stated at a White House news conference.