Nvidia's AI Tech Sale: A New Trade Frontier Between US and China

US President Trump approved the sale of Nvidia's H200 AI chips to China, reversing previous restrictions. This geopolitical shift highlights transactional trade policies, emphasizing revenue over security. The move raises questions for US allies, like Australia, balancing economic ties with China and defense partnerships with the US.

In a surprising policy shift, the US government, led by President Donald Trump, has given the green light for exporting Nvidia's advanced H200 artificial intelligence chips to China. This marks a departure from previous stringent controls to check China's access to cutting-edge technology.

The decision allows the US to claim 25% of the sales revenue, signalling a transactional approach in trade relations where economic benefit often overshadows strategic security considerations. The H200 chips, far superior to those previously exported, are integral to AI-driven weapon systems, underscoring the complexity of modern warfare transcending borders and policies.

This strategic move has significant implications for allies like Australia, deeply entwined with China in trade and allied with the US in defense. As the US reshapes its export controls, questions arise about Australia's stance and the sovereignty of its policy alignment in an increasingly unpredictable global landscape.