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For years, the U.S. government has restricted American chip companies from exporting their most advanced semiconductors to China,
hoping to curb China's rapidly growing AI industry.
These new rules will be announced perhaps as early as this week,
to essentially strengthen the export restrictions on advanced semiconductors in areas that China obviously wants to dominate.
The strategy started when Joe Biden was president.
And for a time, it was also embraced by President Donald Trump.
Trump and his team are planning to expand efforts to limit China's tech advancements including tougher chip curbs.
But this week, Trump made a big exception.
So we negotiate a little deal.
The president said he would let two of the biggest U.S. chip companies,
Nvidia and Advanced Micro Devices, or AMD, sell some of their less advanced chip models to China again.
But there's a catch.
The companies have agreed to share 15% of the revenue from those sales with the U.S. government.
They say that if I'm going to do that, I want you to pay us as a country something.
How unusual is a deal like this?
Unprecedented.
Joe Doe covers Economic Statecraft for Bloomberg.
There's this National Security question and this like pay to play question.