🚨 UPDATE: China Implements New Semiconductor Approval Rules
After a brief 48-hour rally in Nvidia following Trump’s announcement, Beijing has responded with a new regulatory framework, according to the Financial Times.
Now, Chinese buyers must prove that domestic chips cannot meet their needs before purchasing U.S. semiconductors.
Key Points:
💡 Not a tax — this is a state-controlled licensing system.
📅 Timeline:
• Dec 8: Trump imposes 25% tariffs.
• Dec 9: China rolls out restrictions for buyers.
Impact:
• Reflects the H20 scandal: blocked sales, frozen export revenue, and delayed monthly orders.
• Nvidia earned $12B from China in FY2024, now trapped behind administrative barriers.
• The move flips semiconductor logic: the U.S. expects China to depend on old, high-cost tech; Beijing turns that dependence into leverage.
• Denied applications strengthen Huawei and accelerate domestic chip development.
• Black-market channels could surge, potentially exceeding $1B this year.
Dubbed the “Silicon Tax,” these measures show China will not simply comply with U.S. controls.
Next Steps:
Either Trump lifts restrictions, or U.S. chips must navigate a complex licensing system while China accelerates toward self-sufficiency in semiconductors — moves likely to shape the industry for the next decade.
#Nvidia #Semiconductors #China #USChina #TechNews