economy

Will 2026 Be Another Year of Chinese Dragon Dominance Over Trump’s America?

December 17, 2025 albayan.ae
Will 2026 Be Another Year of Chinese Dragon Dominance Over Trump’s America?

Trump reinforces China’s gains by approving Nvidia chip sales despite tariffs.

SUMMARY

Trump approved the sale of advanced chips from the American company Nvidia to China, boosting China’s gains in semiconductors and narrowing the technological gap between China and the United States.

KEY HIGHLIGHTS

  • Xi Jinping benefits from waiting for strategic opportunities.
  • Trump approves sale of Nvidia's "H200" chips despite imposing a 25% export tariff.
  • The decision boosts China’s gains in advanced semiconductors.
  • Trump gives China a free gift by narrowing the technological gap with America.

CORE SUBJECT

Impact of Trump’s decision on China’s dominance in the semiconductor market

Xi has simply benefited from waiting for strategic opportunities. Rarely has the reversed motto, "Do nothing, just stand still," been more appropriate than now. In recent days, Trump has reinforced Xi Jinping’s gains by approving the sale of Nvidia's "H200" chips, even if it was with a 25% export tariff imposed. The logic behind this is that Nvidia is a leading American company and should dominate all markets. But the truth is that Trump has given China the biggest free gift so far, as advanced semiconductors are known to be the main field where China still lags behind the United States. Thus, Trump is effectively helping to narrow this gap.

KEYWORDS

Trump Xi Jinping Nvidia Semiconductors Chinese economy Technology Export tariffs

MENTIONED ENTITIES 3

Xi Jinping

👤 Person_Male

President of the People's Republic of China

Trump

👤 Person_Male

Former President of the United States

Nvidia

🏛️ Organization

Leading American company in semiconductor manufacturing