In a recent interview, former White House National Economic Adviser Kevin Hassett shed light on a key decision made during Donald Trump’s presidency: allowing Nvidia’s H20 AI chips to be shipped to China. Speaking on Fox News Channel’s The Story with Martha MacCallum, Hassett said the move was a calculated strategy to maintain America’s technological edge in the global AI chip race.
The H20 chips, developed by Nvidia, are the most advanced models the company is legally allowed to sell in China under current U.S. export restrictions. These chips are slightly dialed back in computing power compared to versions sold elsewhere, a direct result of export controls introduced during Trump’s first term and continued under President Biden.
Nvidia recently confirmed it had filed applications with the U.S. government to resume H20 shipments to China. According to the company, it has received assurances that those licenses will be approved soon.
So why allow these sales at all, especially given rising tensions between Washington and Beijing over tech dominance?
Hassett pointed to a long-term strategic concern: cutting China off completely could backfire. "One of the risks that you have to take seriously is that if China's not buying chips from us, then they're innovating, making their own chips," he said. "And the one thing we don't want is for them to jump ahead in the race for chips."
The underlying message is clear: selling slightly restricted AI chips to China now might slow down their ability to leapfrog the U.S. in the future. It’s a delicate balance between maintaining a commercial presence and protecting national security and it’s one the U.S. is still trying to navigate.
0 Comments