The Two Giants Had No Choice: If They Make Money in China, Part of It Goes to America

In return, they will receive licenses to export their advanced products to the Chinese market, the Financial Times (FT) reported, citing anonymous informed sources.

Under the new agreement, Nvidia will be allowed to export its H20 chips, and AMD its MI308 chips and semiconductors adapted to earlier U.S. export restrictions, the report said.

The administration of President Donald Trump views the deal as part of a broader strategy to secure direct financial benefits in exchange for easing certain trade restrictions. However, analysts warn that it blurs the line between national security measures and fiscal bargaining, as reported by Bloomberg.

Jacob Feldgoise, a researcher at the Center for Security and Emerging Technology in Washington, described the move as “unprecedented” in U.S. export controls and warned that it could weaken Washington’s negotiating position with its allies.

Nvidia previously estimated that without restrictions, it could earn more than $7 billion per quarter from sales of H20 chips to China, meaning the U.S. government would receive about $1 billion per quarter under this agreement.

Estimates suggest that AMD could earn between $3 and $5 billion annually if restrictions against China were lifted.

Beijing is expected to resist such an arrangement. A social media account linked to state broadcaster CCTV has already criticized the H20 chip for “security flaws” and “inefficiencies”, comments analysts interpret as a prelude to another round of trade tensions with Washington.