Chapter 1: What is the main topic discussed in this episode?
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Joining us now as we widen the lens on this whole story involving NVIDIA export controls and on a greater scale, U.S.-China relations is Nicholas Burns, the former U.S. ambassador to China in the Biden administration, professor at Harvard's Belfer Center. Mr. Ambassador, welcome back to Bloomberg TV and radio. It's great to have you. It seems all roads lead to China.
We're talking about Nvidia or new tariffs on India. So let's start where we're already talking, and that's export controls and this idea of Nvidia opening once again a new market in China. There's even reporting today that Nvidia is talking about a Blackwell chip that might be available soon. scaled down version for the China market, but there's still no deal.
And from what we understand, no licenses to begin reselling these AI chips in China. Will it happen?
This is going to be a consequential decision for the Trump administration. U.S. policy for several years now, for three years, has been to deny to China those dual-use exports like advanced chips for AI purposes. That might then help the People's Liberation Army to out-compete the United States military in this ferocious competition for military technology power that's
underway, and that will in many ways define the relationship. And you saw when President Trump permitted the sale of the NVIDIA H20 chip, the Chinese government turned around and said that they had problems. They might not give authority to Chinese companies to purchase the chips because they suspected these chips could be problematic for them.
And so now you have a second decision coming up by the Trump administration. I certainly hope that the Trump administration will be as tough-minded as President Biden was. Deny this technology to China, because it's far more important that the United States weaken the People's Liberation Army and not strengthen it by allowing the sale of an advanced chip.
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Chapter 2: What concerns does Nicholas Burns have about Nvidia selling Blackwell chips to China?
He made a lot of news, not only here but in Delhi today, with his answer. What he said about India's Prime Minister Modi and his culpability regarding Russia's war in Ukraine. Let's listen.
Everybody in America loses because of what India's doing. The consumers and businesses and everything lose, and workers lose, because India's high tariffs cost us jobs and factories and income and higher wages. And then the taxpayers lose because we've got to fund Modi's war.
Modi's war was the headline on the front page of every major newspaper this morning in India, and it led all of their newscasts when he said that last evening. It was considered an insult and framed to be inaccurate. What do you make of this rhetoric coming from the White House?
I think it's unfortunate. I also think it just doesn't make a lot of sense if you look at the history of the U.S.-India relationship. You know, we have this historic competition with China underway, really for which of us is going to be the strongest country in the Indo-Pacific and in the world in the future. India has been now for 25 years strong.
One of the key strategic partners of the United States, every American president, starting with President Bill Clinton, Democrat and Republican, has believed, and this includes President Trump in his first term, that we've got to get along with India. We've got to strengthen our military partnership because that strengthens our ability to leverage China.
and to make sure that China is hemmed in in its territorial ambitions on the India-China border in the Himalayas, but also in places like the South and East China Sea. So I understand that the Trump administration believes in this policy of high tariffs.
But when you exact these high tariffs on India, Japan, South Korea, the European Union, you're weakening our natural coalition of countries that want to be with us In terms of going up against the Chinese and limiting their power. But it's difficult to do when you've got 50% American tariffs on Indian products coming into the United States. Every country has domestic politics. Every leader.
President Trump and Prime Minister Modi have domestic politics. It's already happening. We're reporting that in March, Beijing began quiet outreach to India. President Xi wrote a letter to test the waters on improving ties. I have less than a minute, and I don't want to cut you off, Ambassador, but where does this end with this letter?
Well, you know, there's going to be an historic meeting between President Xi Jinping and Prime Minister Modi on September 3rd in Beijing. And this is this is a step backwards, a major step backwards for the United States, because we had since the end of the 90s, a long time ago, we've established this true partnership with India.
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