US-China Chip Conflict: Key Dates and Developments

As President Donald Trump has stated, the United States has permitted chip giant Nvidia to sell AI semiconductors to China. This article outlines the ongoing struggle over this vital technology:

Key Developments in the Chip War

August 2022: Biden’s Chips Act

During his presidency, Joe Biden enacted legislation aimed at enhancing domestic chip production. Washington is concerned that China may dominate this sector through substantial state-backed investments.

The Chips and Science Act allocates US$52 billion (RM214 billion) to stimulate the manufacturing of microchips, essential for nearly all modern equipment.

Export Controls and Strategic Moves

October 2022: Export Controls

In response to national security concerns, the U.S. imposes export restrictions on advanced chips used for training and powering artificial intelligence to China.

Additionally, the U.S. tightens controls on selling chip manufacturing equipment. China accuses the U.S. of attempting to “maliciously block and suppress Chinese businesses.”

By December, the U.S. blacklists 36 Chinese firms, many linked to the defense sector, severely restricting their access to U.S. chip manufacturing technology and designs.

Further Restrictions and Industry Impacts

October 2023: Tighter Curbs

As generative AI tools, such as OpenAI’s ChatGPT, gain popularity, the U.S. government intensifies restrictions. While initial focus was on Nvidia’s H100 chip, the government expands export limitations to include other, less advanced semiconductors.

December 2024 – January 2025: Biden’s Final Moves

With Trump set to return to the White House, Biden enacts new regulations on advanced chip exports to China. “The U.S. leads the world in AI now — both AI development and AI chip design — and it’s critical that we maintain this status,” states Commerce Secretary Gina Raimondo.

One regulation mandates authorizations for re-exports and in-country transfers, aimed at preventing any circumvention of chip supplies to China.

Emerging Challenges and Responses

January 2025: DeepSeek Shock

Chinese startup DeepSeek surprises the AI sector with a low-cost, high-quality chatbot, posing a challenge to U.S. aspirations of leading global technological development.

April 2025: Nvidia’s H20 Blocked

Nvidia develops new H20 semiconductors, a less powerful variant of its AI processing units intended for export to China. However, the company reports that Washington requires licenses for shipping H20s due to fears they could be utilized in supercomputers.

Policy Changes and Market Dynamics

May 2025: Trump Eases Rules

The Trump administration reverses some of the chip export controls established during Biden’s tenure, responding to international calls for access to crucial technologies for AI development.

September 2025: ‘Nanoseconds Behind’

In July, Nvidia announces it will resume H20 sales to China after receiving a government license. However, soon after, Beijing reportedly prohibits Chinese companies from purchasing them, leading firms to opt for domestically produced chips instead.

Nvidia’s Huang warns that the combination of U.S. restrictions and China’s policies will contribute to the growth of China’s chip industry, stating, “They’re nanoseconds behind us. So we’ve got to compete.”

Agreements and Future Outlook

December 2025: Trump-Xi Agreement

Trump announces an agreement with Chinese President Xi Jinping that permits Nvidia to ship H200 chips — a more advanced product than H20 — to “approved customers in China.”

Trump emphasizes “conditions that allow for continued strong National Security” while criticizing Biden’s handling of the chip war. Notably, Nvidia’s most advanced chips, including the Blackwell series and upcoming Rubin processors, remain exclusive to U.S. customers.

The H200s are approximately 18 months behind the company’s latest offerings.