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Why are Nvidia and AMD sharing revenue with China?
Nvidia and AMD agreed to pay 15% of their AI chip sales to China as a condition to get export licenses back. This move allows them to resume selling older AI chips in China after earlier bans, balancing trade interests with US security concerns.
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What are the security risks of US chip sales to China?
US officials worry that chips sold to China could be used for military or surveillance purposes. Chinese state media have raised concerns about potential backdoors in Nvidia's chips, which Nvidia denies, adding geopolitical tension.
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How does this deal affect US tech companies and global trade?
The revenue-sharing deal marks a shift in US trade policy, blending financial interests with export controls. It could set a precedent for future trade negotiations and impact how US companies operate in China and worldwide.
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Is this a sign of easing or tightening US-China tech restrictions?
This deal suggests a complex balance—while some restrictions are eased to allow sales, security concerns remain high. It indicates a nuanced approach rather than a clear-cut easing or tightening of US-China tech policies.
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What does this mean for the future of US-China tech rivalry?
The revenue-sharing arrangement highlights ongoing tensions and negotiations. It shows that economic and security interests are deeply intertwined, shaping the future landscape of global tech competition.