Following his summit with Xi Jinping, President Trump has unveiled a pragmatic new strategy: allowing U.S. tech giants to negotiate chip deals directly, while Washington maintains ultimate strategic control.
WASHINGTON: In the wake of his historic meeting with Chinese President Xi Jinping, President Donald J. Trump has confirmed a significant new framework for U.S.-China tech relations. China will now be permitted to open direct negotiations with Nvidia and other leading American chipmakers to discuss semiconductor supply deals, a move that comes as the U.S. asserts its global dominance in AI and microcircuit technology.
Speaking to the press, President Trump detailed the conversation: "We discussed chips, and he [President Xi] is going to be working with Nvidia and others to see about the purchases."
Reasserting America's market dominance, the President continued: "Look, we make the greatest chips, and Nvidia is the leader. I’ll talk to Jensen [Huang, CEO of Nvidia], but China will be dealing directly with Nvidia to see if they can do it."
In a final, definitive statement that sets the tone for this new policy, President Trump concluded: "I told them – that’s between you and Nvidia."
A Pragmatic "America First" Approach
According to the White House, this statement reflects the Trump administration's pragmatic approach to international trade and high technology. The strategy encourages U.S. corporations to negotiate independently and pursue commercial opportunities, while the administration itself maintains strategic leverage through its broader tariff and technology control policies.
This is not a blanket lifting of restrictions. Instead, it is a strategic pivot.
Analysts are calling this an "extremely wise move" for several key reasons:
U.S. Retains Control: The U.S. government still holds the ultimate power over the global chip supply chain. It can, at any time, use export controls or sanctions to protect national security, effectively setting the boundaries within which companies like Nvidia can negotiate.
Eliminates "Gray" Channels: This new policy forces China to negotiate "in the sunlight," within the commercial and legal framework defined by Washington. It is designed to shut down the "gray market" routes and illicit methods Beijing has previously used to acquire sensitive U.S. technology.
President Trump is once again demonstrating his dual-track policy: he knows when to apply maximum pressure, but also when to let the market function. This move successfully maintains America's technological supremacy while simultaneously preserving a flexible and powerful commercial diplomacy channel with Beijing.
__________
Source: This report is based on information from the White House, Fox Business, Reuters, and Bloomberg.