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China-America Tension: When the Presidents of China and America were sitting at a table in South Korea recently, the world was hopeful that the tension would now end. But, while shaking hands, both of them have once again started pulling each other’s legs.
New Delhi. When US President Donald Trump and China’s President Xi Jinping were sitting at the negotiating table recently, the whole world felt that things were going to be fine between the two. But, only a few days passed after this conversation ended and the conflict between the two started again. It is reported that when China issued instructions to its companies regarding the use of domestic chips, the American President got upset over this. He has given strict orders to the largest chip manufacturing company Nvidia to stop exporting AI chips to China.
Trump and Jinping sat together recently to finalize the trade deal. When both of them shook hands, it seemed that things were going to be alright. But, China recently issued an order in which it has instructed the companies of its country to insist on adopting indigenous chips. After this step, the US President became furious and asked chip manufacturing company NVIDIA not to supply Artificial Intelligence (AI) based chips to China.
Nvidia was preparing to supply to China
News agency Reuters, quoting experts in the matter, said that Nvidia had sent samples of AI-based chip B30A to many of its Chinese customers and had also asked to supply it. Now news has come that the White House has informed all federal agencies that it will not allow Nvidia’s AI chips to be sold in China. This chip is used to understand and transmit the language of large AI models.
China gave the first blow
China’s Xi Jinping government has already initiated a regulatory investigation against Nvidia and its challenges have increased. After this, in its recent decision, all government subsidized data center projects have been given strict instructions to use only chips developed by domestic companies. Not only this, such data centers whose construction has been 30 percent completed have also been instructed to remove foreign chips and cancel their orders. This decision of China will also affect other American chip manufacturing companies including Nvidia.
Now America gave a shock to China
There is a large export of chips from America to China every year. In the year 2023, this figure was around 14 billion dollars. Many Chinese companies need American chips. Especially a large quantity of chips are supplied to China every year from Nvidia. But, due to China’s recent decisions and the orders given by the White House, American exports are going to be affected. Obviously, Chinese companies will also definitely be affected by this. However, Nvidia has talked about changes in its AI chip model B30A, so that Trump’s sanctions can be avoided.
China America tension
