As the two sides get closer to a precarious truce in their intensifying trade war, Donald Trump intends to bring up Nvidia's most recent AI chip restrictions with Chinese leader Xi Jinping at the APEC conference in Seoul.
When the two leaders meet this week in Seoul on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, US President Donald Trump is anticipated to question Chinese President Xi Jinping about Beijing's limitations on Nvidia's cutting-edge Blackwell AI processors.In an interview with reporters on Air Force One on its way to Gyeongju, South Korea, Trump called Nvidia's Blackwell the "super-duper chip" and stated, without providing further details, that he might talk to Xi about them.
Trump stated that he was "very optimistic" about his first meeting with President Xi since getting back to the White House. "I think we may be talking about that with President Xi," he added.
Trump will attend a private dinner with South Korean President Lee Jae-myung and hold a number of bilateral talks, including the much-anticipated face-to-face encounter with Xi, before leaving on Thursday, even though he will not be attending the main APEC leaders' session.
According to US sources, Washington and Beijing negotiators reached a framework agreement on Sunday to stop further U.S. tariffs, a development that sent world markets plunging to all-time highs.
Trump will attend a private dinner with South Korean President Lee Jae-myung and hold a number of bilateral talks, including the much-anticipated face-to-face encounter with Xi, before leaving on Thursday, even though he will not be attending the main APEC leaders' session.
According to US sources, Washington and Beijing negotiators reached a framework agreement on Sunday to stop further U.S. tariffs, a development that sent world markets plunging to all-time highs.
One of the main points of contention in the lengthy trade negotiations between the two biggest economies in the world this year has been the US company's sales of its expensive AI processors to China.
Washington's export restrictions that prevent Nvidia from exporting its most cutting-edge AI chips to China have long irritated Beijing. The United States has defended these limitations by claiming that the chips would be used by the Chinese military to enhance its capabilities.
What will Trump and Xi talk about?
Nvidia's Blackwell AI chip architecture, a state-of-the-art processor series that supports advancements in artificial intelligence, data processing, and defense systems, will be at the center of the Trump–Xi discussion.
Washington's export restrictions that prevent Nvidia from exporting its most cutting-edge AI chips to China have long irritated Beijing. The United States has defended these limitations by claiming that the chips would be used by the Chinese military to enhance its capabilities.
What will Trump and Xi talk about?
Nvidia's Blackwell AI chip architecture, a state-of-the-art processor series that supports advancements in artificial intelligence, data processing, and defense systems, will be at the center of the Trump–Xi discussion.
"Nvidia's cutting-edge Blackwell AI chips are a major point of contention in trade negotiations, and Trump stated he would talk to Xi about them," a senior White House official told reporters on Wednesday.
The cornerstone of Washington's strategy to limit China's technology advancement is its export prohibition on advanced AI processors. The limitations have restricted Beijing's access to semiconductors needed for cloud infrastructure, supercomputing, and AI model training—all key components of Xi's "Made in China 2025" plan.
The Blackwell line represents the US's leadership in next-generation computing and has been referred to by Trump as "super-duper" chips that would "define the next era of American innovation."
The cornerstone of Washington's strategy to limit China's technology advancement is its export prohibition on advanced AI processors. The limitations have restricted Beijing's access to semiconductors needed for cloud infrastructure, supercomputing, and AI model training—all key components of Xi's "Made in China 2025" plan.
The Blackwell line represents the US's leadership in next-generation computing and has been referred to by Trump as "super-duper" chips that would "define the next era of American innovation."
Nvidia AI chip ban in China: a calculated countermove
A turning point in the tech dispute has been reached with Beijing's tightening of regulations on US chip imports, which include de facto limitations on Nvidia's cutting-edge GPUs. As a result of the action, Chinese companies are essentially forced to rely on domestic alternatives or outdated, less effective chips instead of buying or utilizing Nvidia's most recent hardware for AI research.
Similar to Washington's language in its own export restrictions, China's Commerce Ministry has presented the move as a national security precaution. But according to analysts, it's a calculated move that's part of a larger effort to show Beijing won't continue to be a passive target of Western tech restrictions.
A turning point in the tech dispute has been reached with Beijing's tightening of regulations on US chip imports, which include de facto limitations on Nvidia's cutting-edge GPUs. As a result of the action, Chinese companies are essentially forced to rely on domestic alternatives or outdated, less effective chips instead of buying or utilizing Nvidia's most recent hardware for AI research.
Similar to Washington's language in its own export restrictions, China's Commerce Ministry has presented the move as a national security precaution. But according to analysts, it's a calculated move that's part of a larger effort to show Beijing won't continue to be a passive target of Western tech restrictions.
Wang Wen, dean of Renmin University's Chongyang Institute for Financial Studies in Beijing, stated, "China is very calm in facing all these conflicts and difficulties set up by the United States." "The United States remains a significant partner, but its significance in China's landscape is diminishing."
China's AI aspirations are reshaped by Huawei's development.
Huawei Technologies has quickly become the national leader in AI chip design and manufacturing as Nvidia's access to the Chinese market narrows. International attention has been focused on its Ascend 910B and more recent Ascend 920 CPUs as possible competitors to Nvidia's A100 and H100 series.
China's AI aspirations are reshaped by Huawei's development.
Huawei Technologies has quickly become the national leader in AI chip design and manufacturing as Nvidia's access to the Chinese market narrows. International attention has been focused on its Ascend 910B and more recent Ascend 920 CPUs as possible competitors to Nvidia's A100 and H100 series.
Beijing is now more confident that it can eventually become technologically independent because to Huawei's recent advancements in semiconductor manufacturing, especially in the face of US sanctions. Major Chinese data centers and government-affiliated research facilities have already begun using the company's chips, which are intended for AI training and inference.
According to industry analysts, Huawei's advancements have the potential to completely alter the competitive environment in the global AI market, especially if Chinese software ecosystems continue to develop separately from platforms under US control.
This story, according to Xi, validates his long-held idea of "tech sovereignty"—making sure that China's digital future is independent of Western technology.
According to industry analysts, Huawei's advancements have the potential to completely alter the competitive environment in the global AI market, especially if Chinese software ecosystems continue to develop separately from platforms under US control.
This story, according to Xi, validates his long-held idea of "tech sovereignty"—making sure that China's digital future is independent of Western technology.
The Taiwan issue is a major concern.
Under its strategy of strategic ambiguity, Trump has wavered on Taiwan, the self-governing island backed by Washington but claimed by China, since taking office again in January.
One White House insider stated, "Trump claims Xi has assured him he will not invade Taiwan as long as the Republican president is in office." "However, Trump has not yet authorized any additional US arms transfers to Taiwan."
Lin Chia-lung, Taiwan's foreign minister, said Tuesday that he was confident Trump would stay on the island. Lin stated, "We are not concerned that Trump would 'abandon' Taiwan during his meeting with Xi this week."
Under its strategy of strategic ambiguity, Trump has wavered on Taiwan, the self-governing island backed by Washington but claimed by China, since taking office again in January.
One White House insider stated, "Trump claims Xi has assured him he will not invade Taiwan as long as the Republican president is in office." "However, Trump has not yet authorized any additional US arms transfers to Taiwan."
Lin Chia-lung, Taiwan's foreign minister, said Tuesday that he was confident Trump would stay on the island. Lin stated, "We are not concerned that Trump would 'abandon' Taiwan during his meeting with Xi this week."
Tensions are still high, though. Beijing reaffirmed on Wednesday that it "absolutely will not" rule out using force in relation to Taiwan. The matter was minimized by Trump, who told reporters that he "did not know whether he would even discuss Taiwan" with Xi.
Expectations for the Trump-Xi encounter
Trump views the Seoul meeting as a chance to portray American power while maintaining diplomatic channels, as well as an economic and political balancing act. For Xi, it is a chance to reiterate that Beijing is now an equal negotiator with Washington and no longer a submissive role in world politics.
Expectations for the Trump-Xi encounter
Trump views the Seoul meeting as a chance to portray American power while maintaining diplomatic channels, as well as an economic and political balancing act. For Xi, it is a chance to reiterate that Beijing is now an equal negotiator with Washington and no longer a submissive role in world politics.
There is pressure on both leaders to stabilize markets and stop additional economic harm. Beneath the rhetoric of collaboration, however, is a more profound conflict that revolves around digital influence, semiconductor control, and AI dominance.
Although the negotiations may result in a brief truce, neither side seems willing to give up its goals. The Blackwell chips are "super-duper," as Trump described them. The bigger takeaway for Xi, however, might be that America no longer needs to approve China's technical advancement.
Although the negotiations may result in a brief truce, neither side seems willing to give up its goals. The Blackwell chips are "super-duper," as Trump described them. The bigger takeaway for Xi, however, might be that America no longer needs to approve China's technical advancement.
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