India, Aug. 13 -- According to leading media outlets, major US chip manufacturers such as Nvidia and AMD have agreed to hand over 15% of their revenue from sales of advanced AI chips in China to the US government. This is part of a deal to obtain export licenses, now that the US has restricted the export of these chips to China. The Trump administration is using this agreement to gain both financial and political advantage from trade with China.

Nvidia and AMD, two of the largest US chip manufacturers, have agreed to an unusual arrangement whereby 15% of their revenue from sales of AI chips in China will be paid to the US government. This agreement is a condition for obtaining export licenses under President Trump's trade policy. It conc...