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Bessent believes the new agreement will benefit NVIDIA as it expands into China, making its chips a benchmark for Chinese technology and allowing US taxpayers to share in these profits. He remains open to extending the commission to other industries but notes it is currently unique to AMD and NVIDIA.
Regarding national security concerns, Bessent asserts there are no issues with the H20 GPUs since they do not represent cutting-edge technology. He warns against setting a precedent where Chinese standards dominate globally or even in China, especially concerning Huawei’s influence on digital infrastructure. The Chinese government’s apprehension about backdoors and tracking systems in NVIDIA products is seen as evidence of their concerns about standardization.
Bessent acknowledges that the US is concerned with China “piggybacking” on American technology but emphasizes that the administration aims to transform “unfettered trade” into “secure or fair trade.” The commission serves this purpose by ensuring secure trading practices and preventing the sale of advanced chips to everyone.
Lastly, Bessent confirmed that the revenue generated will be used to reduce US debt. He noted that while some reports suggest the money might benefit American citizens via tax breaks for the bottom 50% of wage earners, Trump’s plan includes provisions such as no tax on tips or overtime.
