Trump administration softens stance on China, eases chip sales

The Trump administration has shifted its approach towards China, moving from punitive measures like tariffs to a more conciliatory stance. This change is exemplified by the decision to allow Nvidia to sell its H20 AI chip to China, a reversal of a previous ban. This move is seen as an effort to appease Beijing and is partly driven by arguments that it benefits American technological leadership. While initially denying a direct trade-off, officials later suggested the chip sale was part of broader discussions with China, hinting at a strategy to "woo" China rather than confront it. This marks a departure from the administration's earlier aggressive trade policies, which had led to retaliatory actions from China impacting critical U.S. industries.