Treasury Secretary Scott Bessent appeared to soften the administration’s earlier tough stance on chip exports on Tuesday when he said that Nvidia’s cutting-edge Blackwell chips might someday be sold to China as technology develops and newer generations of semiconductors materialize.
“There may be a case down the road – I don’t know whether it’s 12 or 24 months, given the incredible innovation that goes on at Nvidia – where the Blackwell chips may be two, three, four (levels) down their chip stack in terms of efficacy,” Bessent stated to CNBC. “And at that point, they could be sold off.”
Change From Trump’s Previous Opinion
The remarks mark a significant shift from President Trump’s recent statements that Nvidia’s most cutting-edge AI chips will only be used in the United States. Trump made the unambiguous declaration that “the most advanced, we will not let anybody have them other than the United States” just days prior.
The Treasury Secretary’s comments coincide with a more general warming of trade relations between the United States and China after Trump and Chinese President Xi Jinping held a high-stakes meeting in South Korea last week. The White House described the outcome of the meeting as a “historic” trade deal that includes Chinese pledges to halt the flow of fentanyl and lift export limits on rare earth elements.
Evolution Of Strategic Export Control
Although Bessent described the Blackwell chips as the “crown jewel” of Nvidia’s current lineup, he also pointed out that they could soon become less strategically critical due to rapid technical improvement. Citing national security concerns on China’s possible military uses of the technology, the administration has upheld stringent export restrictions on cutting-edge AI chips.
Only older, less capable chips can now be exported, and current U.S. regulation forces American chipmakers to share 15% of sales earnings with China. According to CEO Jensen Huang, Nvidia’s market share in China has reportedly decreased to zero as a result of these restrictions.
The U.S.-China relationship is in a “good place” right now, Bessent added, adding that Trump and Xi might get together again at the next G20 summit. According to the Treasury Secretary’s remarks, the administration is thinking about taking a more accommodating stance on technology exports as part of a larger strategic rivalry with China.