US to allow exports of advanced artificial intelligence chips to China • FRANCE 24 English

Well, time now to get you some uh business news. We have Charles Pellegra in the studio with us. Morning to you, Charles. We’re kicking off with Donald Trump who’s allowing the export of advanced artificial intelligent chips uh to China. Walk us through that. So the decision settles a debate that pitted those who wanted to completely stop these exports for national security reasons as these chips could help Beijing supercharged their military and those who said US AI chip makers like Nvidia needed access to the Chinese market in order to maintain their dominance in the sector. Uh, US President Donald Trump made the announcement in a social media post on Monday, saying it will allow Nvidia’s second most powerful AI chip, the H200 processor, to be exported to China, but that the US government will collect a 25% fee on those sales, adding that the move will protect national security, create American jobs, and keeping uh keep America’s lead in AI. details still need to be finalized, notably conditions for shipment or whether there will be a limit to the amount of chips that can be authorized. Well, so what are the uh likely consequences of powerful AI uh chips to China? Sh. Um well, first I wanted to look at the reactions to this announcements. Nvidia in a statement offering the H200 chips uh said that it would that this would approve to c to said allowing these chips to approve customers strikes a thoughtful balance that is great for America. But the reaction in the political sphere has not been so positive. A group of Democratic senators described the decision as a colossal economic and national security failure that would boost China’s AI industry, notably rivals to open AI like DeepSec and its military. Even Republican representatives John Molinar criticized the move, saying that China will rip off Nvidia’s technology, mass-produce it themselves, and then seek to end Nvidia as a competitor. All right, so let let’s think a little bit about how uh those consequences are going to, you know, play out with these AI uh chips in China. So, a nonpartisan think tank, the Institute for Progress, actually looked into this in a report published on Sunday. And among uh the key implications they outlined were the fact that China would have access to chips that outperform any it can produce domestically, that its AI labs would be able to build AI supercomputers that achieve performance similar to US supercomputers, and finally that this wouldn’t slow down China’s efforts to be more self-reliant when it comes to semiconductor design and manufacturing. So it’s unclear whether this US decision will actually lead to new sales in China as Beijing has been telling its companies not to use uh US technology. Well, here in Europe, fears have been growing about the continent’s automobile industry steadily being obliterated. It has to be said by competition once again coming from China. This year the European Union imported more cars from China than it exported to the country. It’s a historic first and it applies to auto parts as well. While its exports to the US have cratered amid a trade war with the Trump administration, China’s trade surplus with the EU is up some 15% this year with some European leaders including French President Emanuel Mron to suggest the block may need to roll out hefty tariffs of its own to protect its endangered manufacturing base. Brian Quinn and our colleagues at Fis take a closer look. For his next company car, this French businessman has chosen China. He’s picking up his new BYD. The brand may not yet be a household name in France, but it’s already a global giant. His model is a plug-in hybrid with an 870 km range priced at just over 44,000. More and more French car buyers are making the same call, and the brand isn’t hiding its ambitions. We’ve gone from 50 dealerships to 70. Next year we’re looking at 200 French sites. Demand is very strong. Companies like BYD, MG, and Xpang are taking over Europe as China’s booming EV sector seeks out new markets. 200 companies pushing the boundaries of technological innovation and becoming a point of national pride. They’re generally priced at 20 to 30% less than their European counterparts, and car parts are increasingly part of the trend. Imports are up 67% since 2021. This year, for the first time ever, Europe imported more cars from China than it sent as exports. In part because European companies have their own factories in China. Twothirds of Chinese imports are from Chinese companies. The rest though are from BMW, Mercedes, Dacia, who have chosen to produce there because the costs are lower. The EU has slapped hefty tariffs on fully electric vehicles from China, but there are loopholes for gasoline electric hybrids for now. Leaders like France’s Emanuel Macron are increasingly floating the idea of heftier duties in the face of a massive trade deficit with China. Meanwhile, China’s Premier Lee Chang spoke this Tuesday at a meeting attended by the heads of the IMF, World Bank, and World Trade Organization. And without naming US President Donald Trump, he said the greater effort was needed to reform global economic governance due to the trade war waged by Washington. Take a listen. Since the beginning of this year, the threat of tariffs has been brandished across the globe with various trade restrictions proliferating and severely disrupting the world economy. As the situation unfolds, the mutually detrimental consequences of tariffs have become increasingly evident, while calls for the preservation of free trade have grown ever more insistent. Well, let’s round things off with an essential look at the markets today. Let’s have a look at the European Bources. We’re seeing a soft open uh for these bores this Tuesday with the DAX and Frankfurt leading the gains up two ten of a percent higher. Investors awaiting the US Federal Reserve’s monetary policy update uh which is due on December 10th, so on Wednesday with a rate cut widely expected for the last meeting of the year. Okay, Sean, thank you very much for bringing us up to date uh with uh the business. Thank you very much indeed.

US President Donald Trump said on Monday that he would allow the export of US chipmaker Nvidia’s second-most powerful AI chips to China, in spite of criticism saying such a move could end up benefitting Beijing’s military. Trump said the US would collect a 25 percent fee on these sales and added that he’d informed Chinese leader Xi Jinping of his decision. Also in this edition, we look at why Chinese cars are increasingly popular among French consumers.      
##AI ##Chips ##China

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20 comments

  1. The way Trump says it, its as if he determines China's fate. China is too big for the orange man to contain. He will keep banning and unbanning with no end insight.

  2. Why Europe can't sell their EUV and other high tech to China before China makes their own? You're gonna improve the relationship and make money out of it. China is the second biggest chip market and the biggest lithography machine market, why are you willingly giving that market up?

  5. It was NEVER about security and everything to do with Hobbling the competition….

    US has just realised that banning the Chips has not stopped China's advancement in AI so it now wants to make money out of them.

  6. but they don't trust these chips because they already said the previous lower-chips have back door, so why would they even buy these

  9. If you can't stop China, sell them those advance chip, because at least the CIA would still have a backdoor on those chips!

  14. Jensen Huang is desperate, and lobbied Trump to relent, with the promise of giving him 25% cut of the sales. But Chinese side doesn't seem interested in B200, let alone H200.

  16. Generally speaking, the French don't make good cars. They had withdrawn from the US market decades ago because they couldn't compete with the other auto manufacturers, and few Americans wanted them.

  17. They think China will bow to them but realised how insignificant USA and EU is in the face of china.
    I hope china will ban the for good.

  18. They think China will bow to them but realised how insignificant USA and EU is in the face of china.
    I hope china will ban the for good.

  19. Nothing to worry about as China doesn't want to buy and become reliant on nvidia chips – they might buy a few to mess around with but their path is clear

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