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WASHINGTON, DC – APRIL 30: U.S. President Donald Trump (L) listens as Nvidia CEO Jensen Huang speaks in the Cross Hall of the White House during an event on “Investing in America” on April 30, 2025 in Washington, DC. Trump was joined by CEOs to highlight companies and their investments in the United States during the event. (Photo by Andrew Harnik\/Getty Images)<\/p>\n
Getty Images<\/p>\n
Without U.S. investors, there would be little China-based technological advance of the high-end variety to talk about. That\u2019s why it\u2019s both comical and sad when witless U.S. politicians demand that companies with Chinese origins sell themselves to \u201cAmerican\u201d owners. Sorry, but they\u2019re already American owned.<\/p>\n
Which helps explain the intense Chinese demand for U.S. technology along with its know-how. China\u2019s tech companies that are largely a creation of U.S. investment are naturally inclined to purchase inputs from companies located in the nation that is the flowerbed of technological innovation.<\/p>\n
This is useful to think about with President Trump\u2019s taxes on Nvidia and AMD chip sales into China top of mind. Stating what\u2019s already obvious, it\u2019s mistaken in consideration of Trump\u2019s long expressed desire that the U.S. be #1 in AI. Not only do the best of the best Chinese technological companies want what Nvidia, AMD and other U.S. corporations are offering, the benefits extend beyond sales in a Chinese market that promises to grow exponentially in the coming decades.<\/p>\n
Of greater importance considering Trump\u2019s ambitions, there\u2019s quite simply no way for U.S.-based AI and AI adjacent to achieve global #1 status if the best and brightest of U.S. AI can\u2019t avail themselves of labor division with top Chinese AI companies that have achieved their stature via intrepid American investment.<\/p>\n
It can\u2019t be said enough that U.S. venture capitalists aren\u2019t in China because its technologists lack potential, rather they\u2019re there because they do. But if Trump\u2019s paranoia about exports to China (along with that of Senators including Elizabeth Warren and Jim Banks) prevails such that exports to China are limited, the U.S.\u2019s most prominent AI companies will lose sales in concert with greatly reduced collaboration that is even more essential to their progress.<\/p>\n
Which brings us to what has Trump, Warren and Banks so worried: they believe that exports to China threaten the primacy of U.S. technology. They get it backwards.<\/p>\n
That\u2019s because the minute any kind of advanced technology is released into the market, it\u2019s being examined by everyone. Those looking are competitors, including competitors in China. Huang and Nvidia know this intimately. In the words of Huang, stasis means Nvidia \u201cwill be commoditized out of business.\u201d Stop and think about this while contemplating Trump\u2019s export tax.<\/p>\n
By taxing Nvidia and AMD\u2019s exports he\u2019s not just penalizing sales and progress inherent in cooperation. Equally harmful, Trump is allowing global exposure of their technology while depriving them of extra funds that will enable improvement of it. It\u2019s crippling, as business history makes plain.<\/p>\n
Nike co-founder Phil Knight wrote in Shoe Dog that every dollar not nailed down found its way to investment in Nike\u2019s future. Applied to Ford Motor Co., every dollar of profit was directed toward assembly-line improvements enabling the manufacture of cars for \u201cthe great multitude.\u201d With Amazon, Jeff Bezos cherished the initial success of Alexa for its sales enabling quite a bit more experimentation in all new products.<\/p>\n
Which is a reminder that in taxing Nvidia\u2019s and AMD exports to China, Trump is doing more than hamstringing U.S. efforts to be #1. He\u2019s robbing U.S. businesses of precious capital necessary for them to remain #1.<\/p>\n
Trump says a lack of tariff and export tax revenue will render the U.S. a \u201cthird world country.\u201d More realistically, third world countries stay that way by doing exactly as Trump is doing.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON, DC – APRIL 30: U.S. President Donald Trump (L) listens as Nvidia CEO Jensen Huang speaks in…\n","protected":false},"author":2,"featured_media":132562,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,6143,181,507,144,12,83638,4321,74],"class_list":{"0":"post-132561","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-amd","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-china","13":"tag-donald-trump","14":"tag-john-tamny","15":"tag-nvidia","16":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/132561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=132561"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/132561\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/132562"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=132561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=132561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=132561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}