Key Facts
• August 13, 2025: U.S. Treasury Secretary Scott Bessent discussed the agreement on Bloomberg TV.
• NVIDIA and AMD resumed exports of AI semiconductors to China with reduced performance.
• 15% of revenue from Chinese sales will be paid to the U.S. government.
• Bessent suggested this model could expand to other industries over time.
• Revenue from the agreement will be used by the Treasury to repay national debt.
• Bessent praised former President Trump for this “unique solution.”
• China urged domestic companies to limit the use of NVIDIA’s H20 AI accelerators.
• Bessent noted concerns about NVIDIA’s semiconductors becoming a standard in China.
Summary
U.S. Treasury Secretary Scott Bessent highlighted a recent agreement allowing NVIDIA and AMD to resume exports of reduced-performance AI semiconductors to China. Under the deal, 15% of revenue from Chinese sales will be paid to the U.S. government, with funds allocated to national debt repayment. Bessent suggested this model could be applied to other industries in the future. He commended former President Trump for devising this “unique solution,” which balances U.S. economic interests with China’s growing reliance on NVIDIA’s technology. Meanwhile, China has advised domestic companies to limit the use of NVIDIA’s H20 AI accelerators, reflecting concerns over the technology’s dominance. The agreement represents a potential framework for managing trade and technology relations between the two nations.
