Tensions are escalating between the united states and China over Technology Trade for Quite some time. A Casualty of the US-China Trade War is the World’s Most-Valuable Company-NVIDIA. Recently, China reportedly asked domestic companies to scale back purchases of Nvidia’s H20 Computer Chip. The move comes in response to what chinese officials have demed “insulting” remarks by the US commerce secretary howard lutnick.Lutnick’s comments, made during A CNBC appearance in july, downplayed the trump adminies’s decision to ease some expen controls on the h20 – a less powerful version of nvidia ‘Advancedia’ Designed to complete with us restrictions. “We don’t sell them our best stuff, not our second-best stuff, not even our third-best,” Lutnic stated, adding that the goal was to get chinese developers “Addicted to the american technology.”
China Initiates Regulatory Crackdown
According to a report in the financial time, top chinese officials Viewed Lutnick’s Remarks as a Direct Insult, Triggering a Swift Regulatory Crackdown. Agncies include the cyberspace administration of China and the ministry of industry and information technology are reported in the pressure in the pressure camp to reduce their h20 orders. One source told the ft that lutnick’s speech “Gives the coalition [of regulators] One more reason to intensify its efforts to push tech firms to use china’s own chips. Strategy of Reducing Reliance on Foreign Technology Accelerating in the face of perceived disrespection and ongoing trade disputes. Security Concerns, as both countries vie for supremacy in critical technology sector.
Nvidia Responds, Urges Commercial Use
Nvidia has defended the sale of the h20 chip, with a spekesperson emphasizing that the chip is not a Military product. “China won’t relay on American chips for government operations, just like the US government would not relay on chips from China,” The speakesperson said in a statement. “However, allowing us chips for benefit commercial business use is good for everything.”The Commerce Department has not yet commented on the matter. The Dispute Unfolds as Us and Chinese Officials Continue Complex Trade Discussions, And as Nvidia and Fellow Chipmaker amd have agreed to pay a 15% reveneue share to the US government from Secure the Necessary Export Licenses. This incident underscores the fragile nature of tech diplomacy and the fierce competition the global ai race.
