Controversy Ignites Over Trump's AI Chip Decision to China

The Trump administration's decision to allow Nvidia to sell advanced AI chips to China has sparked criticism in Washington. Concerns focus on potential military enhancements by Beijing using the technology. The move represents a significant shift in U.S. policy, aimed at expanding market access for American firms but raising national security fears.

The Trump administration's recent decision to allow Nvidia to sell its second most advanced AI chip to China has drawn sharp criticism from Washington's China hardliners. Fears are mounting that Beijing could use this technology to enhance its military capabilities significantly.

Announced by Trump via social media, the move permits H200 sales to China with a 25% sales fee. Approval for similar sales by AMD and Intel is also expected. Critics argue this jeopardizes America's competitive edge for minimal financial gain.

This decision marks a stark policy reversal from Trump's first term, when he restricted Chinese access to American tech, citing theft and military misuse. Now, the administration believes the sales could discourage Chinese companies from advancing rival technologies. However, experts warn it might erode the U.S.'s AI advantages.

(With inputs from agencies.)