New Rule Requires Nvidia, AMD to Pay 15% of China Sales to U.S.

Published: 12 Aug 2025

Author: Precedence Research

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A leading tech giant in the technology sector, NVIDIA and AMD, have signed a deal and agreed on terms and conditions that the U.S. government sets to secure an export license. According to this deal, both companies will pay 15% of their Chinese revenues to the U.S. government for trading their products in the U.S. However, the Trump administration has banned these products from China, especially AI chip exportation to China, which is generally considered a national security threat. 

Some of the security experts who worked in Donald Trump’s first term wrote a letter to Trump’s administration they are expressing deep concern that the H20 Chip from Nvidia is a potential threat to national security and a potent accelerator to China's AI capability. 

After completing this deal, NVIDIA will pay 15% of its revenue from H20 chip sales in China. Similarly, AMD will also pay 15% of its total revenue generation from sales of the chip MI308 in China to the U.S. government. NVIDIA stated that, “We follow rules the U.S. government sets for our participation in worldwide markets." 

However, this deal raises questions about Trump’s working style and its effect on U.S. security, given his handling of private businesses, which is concerning to everyone. Because of this, the head of trade policy at the Hinrich foundation said, “You either have a national security problem, or you don't. If you have a 15% payment, it doesn't somehow eliminate the national security issue." 

Though some critics said the agreement to hand over 15% yearly revenue to the U.S. in exchange for an export license is an unprecedented decision in a global trade policy.  
This agreement was finalized after the boss of Intel, a rival chipmaker, met with Donald Trump at the White House, and immediately after that, Trump called for his resignation because of his relations with China. Trump said on his social media that Lip-Bu Tan was very conflicted and referred to his alleged investments in some of the companies that were in correspondence with the Chinese military.