Selling Blackwell to China? What Trump said and why critics are alarmed

Trump’s chip gamble alarms critics

En route to a summit with China’s Xi Jinping, US President Donald Trump said he would discuss Nvidia’s most advanced “Blackwell” AI chips, calling them a “super duper chip” and boasting the US is “about 10 years ahead.” Selling such chips to China is currently banned; a change would mark a major policy shift, the New York Times reported.

Why it matters

US officials have long tried to restrict Beijing’s access to cutting-edge AI hardware. Critics warn that enabling Chinese access to top-tier accelerators could shift the strategic balance. Senator Chris Coons called the idea “alarming,” and former US ambassador to China R. Nicholas Burns said allowing sales would be a “massive mistake,” arguing the PLA sees technology as key to dislodging the US.

Nvidia’s stance

Nvidia says China has “more than enough domestic chips for all of its military applications” and backs the administration’s vision to “win and promote US leadership and jobs.” The company has emphasized keeping global AI work on US tech standards and noted Blackwell production developments in the US.

The dealmaking context

The possible chip opening comes amid broader talks: China resuming purchases of US farm goods (soybeans and more), steps on fentanyl-related chemicals, and a pause on its new rare-earth licensing system, alongside potential US tariff pauses or reductions. Trump said he expected to lower tariffs and “work out something” with Xi.

Recent back-and-forth on controls

Earlier this year, the administration blocked sales to China of Nvidia’s H20 (a downgraded Hopper-class chip), then later allowed it after Trump reversed course and floated taking a government cut of revenue, with a regulation said to be in drafting. Beijing, meanwhile, has pushed firms toward domestic alternatives. Nvidia has also developed a downgraded Blackwell for China, the B30A, with about half the computing power of a normal Blackwell.

The stakes

Opponents argue any short-term corporate gains would be “very short-lived” because China seeks chip self-sufficiency, and that US national security should take precedence. Proponents say engagement keeps Chinese researchers building on American platforms.

What’s next

Trump and Xi meet Thursday in South Korea. Outcomes to watch, whether any chip sales are explicitly permitted, whether controls are softened via narrow licensing, and how this intersects with tariff and agricultural trade moves.