The US government has changed its policy. It will now allow Nvidia to sell advanced AI chips to China. President Trump told Chinese President Xi Jinping about this decision. This change makes export rules less strict. These rules were put in place because of national security concerns.
The decision has caused a lot of discussion. Business groups like this change. They say it will help the US economy. However, some politicians disagree. They worry it could be a risk to national security.
This is part of a bigger competition. The US and China are competing in technology. Before, the US had strict rules. It worried that AI chips could help China's military. These rules stopped Nvidia from selling its best chips. Nvidia had to make a weaker chip for China. Last April, even that chip was banned.
President Trump said this is good for the US economy. He said it will create jobs. A special rule says 25% of the money must go to the US government. This is more than before. The Commerce Department will make sure chips go to safe companies. Other US chip companies will also be part of this.
Stock markets reacted well to the news. Nvidia's stock price went up. Nvidia said the policy is balanced. It helps keep jobs in the US. However, many politicians are unhappy. They worry China could use the technology for surveillance. They think it is a risk to long-term security.
The future effects of this change are not clear. It might reduce trade tension. However, it changes the balance between business and security. Critics worry it could weaken efforts to limit China's AI technology. The world will watch to see what happens next.