Chip deal: Why the US is taking a cut from China sales

The agreement is something of a win for China because it does want these chips.

Analysts say leading tech companies including ByteDance, Tencent and DeepSeek bought H20s before the US cut off access in April.

And it is a win for the US government, with analysts Bernstein Research telling the BBC it could make up to $2bn from chip sales to China.

There could be a further victory for Washington, if this leads to a deal on rare-earth elements with Beijing, which currently has a monopoly over the critical minerals.

But critics of the deal say they are alarmed about how this reflects on the White House.

This “is a very different US environment from the one that we’ve had in the past,” says Ms Elms, the trade expert.

“I suppose, generously, you could call it the flexibility of the Trump White House in responding to requests.”