Nvidia Secures China Market Access with Unprecedented 15% Revenue Share in Trump-Xi Trade Deal

Nvidia CEO Jensen Huang has confirmed that a recent trade agreement between former U.S. President Donald Trump and Chinese leader Xi Jinping will allow Nvidia to continue competing in China's crucial market. The deal, finalized in late October 2025, includes an unusual provision requiring Nvidia and AMD to remit 15% of their revenue from certain advanced chip sales in China to the U.S. government in exchange for export licenses. This development follows a period of significant restrictions on advanced semiconductor exports to China.

The agreement specifically permits the sale of Nvidia's H20 AI chip to Chinese customers, a product designed to comply with previous U.S. export controls. However, President Trump clarified that the more advanced Blackwell chips were not part of the discussions and remain restricted. Jensen Huang expressed his hope that Nvidia's state-of-the-art Blackwell chips could eventually be sold in China, noting that the decision rested with the U.S. President.

The trade deal marks a significant shift in U.S.-China technology policy, reversing earlier bans on specific AI chips. Despite the renewed access, the 15% revenue-sharing mechanism has drawn criticism from trade experts, who describe it as "unprecedented" and potentially unconstitutional, likening it to a "pay-to-play" policy. This arrangement aims to balance national security concerns with the commercial interests of U.S. chipmakers.

Amidst these trade dynamics, Huang also articulated a broader vision for Nvidia's impact, stating that the company is poised to "completely transform America's position in the world." This ambition is underscored by Nvidia's recent achievement of a $5 trillion market valuation, positioning it as a leader in the global artificial intelligence industrial revolution. The company has also moved production of its most advanced AI chips to Arizona, aligning with calls to strengthen American manufacturing.

China, meanwhile, has been actively promoting its domestic chip manufacturers, such as Huawei, as alternatives to U.S. technology. This push for self-sufficiency suggests that while Nvidia regains some market access, it will face stiff competition from local players. The long-term implications of this complex trade landscape for global technology supply chains and AI development remain a key area of observation for industry analysts.