Trump Lets Nvidia Sell More Chips to China
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What approval did President Trump give regarding Nvidia's chips to China?
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A win for NVIDIA as President Trump okays the sale of its high-performance chips to China, plus the bellwether stakes of Miami's mayoral race.
Even though the candidates have sought to focus on local issues like housing issues, taxes and transportation. All these national political forces have helped turn the race into a referendum on the parties and on Trump himself.
How will Nvidia benefit from selling H200 chips to China?
And Ford turns to France's Renault to upshift its embattled European business. It's Tuesday, December 9th. I'm Luke Vargas for The Wall Street Journal, and here is the AM edition of What's News, the top headlines and business stories moving your world today. Shares of NVIDIA have jumped off hours after President Trump said he'd let the company export its H200 chips to China in an apparent easing of stringent export controls. Journal Asia business editor Peter Lander says the move is a boon for NVIDIA, which has fought for months to maintain access to the world's second-largest economy.
This is going to be another source of demand for NVIDIA. Probably billions of dollars of chip sales can be made to China if this is ultimately approved. At its peak, China was about 20 percent of NVIDIA's sales. It's been a lot less than that in recent years because of US export controls. So they're still a huge company, extremely profitable without China.
What impact does China's manufacturing sector have on Europe?
But certainly the China market, as CEO Jensen Huang has said, is an important addition to whatever they're selling elsewhere. These chips are believed to be quite a bit ahead of anything that the Chinese chip makers can produce. And so NVIDIA's products would be welcome in China, even though they're not as advanced as China. the Nvidia chips that some U.S. customers can get their hands on.
Curiously, Trump said the U.S. would receive a 25% cut of Nvidia's chip sales in China without offering any details on how. And as Peter explains, taxing exports in that way might not be entirely legal.
The Constitution actually says that the U.S. cannot impose a tax on exports, but probably there's no one out there who could legally challenge it.
What measures are Germany and France considering against Chinese imports?
Nvidia is apparently willing to pay this 25% charge. Their profit margin is much greater than that, but it is an extremely unusual arrangement for the U.S. government to take a cut of sales of a U.S. product that go overseas.
Meanwhile, Chinese competition has been a growing headache for European carmakers, but now two major players are teaming up to try and push back. Ford is engaging France's Renault to make a pair of small EVs and maybe a van down the line to bolster its European lineup. Ford's accounted for just over 3% of new passenger cars sold on the continent this year, down from over 7% a decade ago. Well, let's keep the focus on China as the country has hit a major trade milestone, achieving a $1 trillion trade surplus in goods. That is in spite of U.S. tariffs meant to dent Chinese exports and which have instead seen products redirected elsewhere, including to Europe, where a pair of leaders are now sounding the alarm and hinting at new restrictive measures of their own.
What are the stakes in Miami's mayoral race?
Joining us from Beijing is our China bureau chief, Jonathan Cheng. And from Berlin, we've got global economics correspondent Tom Fairless with us as well. John, let me start with you. Talk to us about this trillion dollar goods surplus figure. What does it represent?
Obviously, what it means is that they're selling goods. far more to the world than they are buying from the world to the tune of a trillion dollars this year.
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Chapters
8 chapters
1
What approval did President Trump give regarding Nvidia's chips to China?
0:00–1:02
2
How will Nvidia benefit from selling H200 chips to China?
1:02–2:04
3
What impact does China's manufacturing sector have on Europe?
2:04–2:49
4
What measures are Germany and France considering against Chinese imports?
2:49–4:00
5
What are the stakes in Miami's mayoral race?
4:00–4:37
6
How is the Miami mayoral election influenced by national politics?
4:37–5:18
7
What is the significance of China's $1 trillion trade surplus?
5:18–6:05
8
What challenges do European countries face from Chinese competition?
6:05–12:35
Speakers
7 identifiedMore from WSJ What’s News
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