'It's Me, Xi Jinping, Choose'...The World in Shock Over Trump's Threat

"Will Expel Chinese Listed Companies"...Trump Tightens Grip on Xi Jinping

US Pressures Allies "Cut Ties with China to Lower Tariffs"

Pressure Mounts on South Korea Ahead of Next Week's Negotiations

NVIDIA's Low-Spec Chips Also Under Export Control

The Trump administration has controlled the export of NVIDIA's low-spec AI training semiconductor, the H20 chip, to China. Analysts suggest that this is an escalation of sanctions to pressure China, which has chosen to confront the US head-on in the tariff war.

NVIDIA announced on the 15th (local time) that it had recently been informed that it must obtain government approval to export the H20 chip to China.

The Trump administration conveyed to NVIDIA that "there is a concern that this product may be used in supercomputers within China" and that this regulation will be applied indefinitely. The H20 is a low-spec AI chip introduced by NVIDIA to avoid sanctions after the US banned the export of cutting-edge semiconductors to China.

Reports have also emerged that the Trump administration and US political circles are considering delisting Chinese companies listed on the US stock market. President Trump stated in a statement that "the ball is in China's court."

It is known that the Trump administration plans to pressure even allied countries to isolate China. The Wall Street Journal (WSJ) reported, citing sources, that the Trump administration is pressuring countries to cut ties with China in exchange for lowering tariffs during mutual tariff negotiations with over 70 countries, aiming to damage the Chinese economy. There is a possibility that this pressure card will be used in negotiations with South Korea next week.

NVIDIA's Low-Cost Chip Used in DeepSeek...US Blocks Export to China

The Trump administration is increasing the pressure on China. In addition to controlling the export of AI chips to China, it is also reportedly considering delisting Chinese companies from the New York Stock Exchange. This is interpreted as an intention to bring China to the negotiating table through a comprehensive isolation strategy that restricts the advanced technology and capital essential for China's AI rise and pressures allies to cut ties with China.

◇ Pressure on China's 'AI Rise'

According to foreign media, the NVIDIA H20 chip, which is on the export control list to China as of the 15th (local time), is the highest-spec AI chip available for use in China. Since 2022, the Biden administration has been controlling the export of cutting-edge semiconductors to China for national security reasons. Chinese tech companies like Alibaba and Tencent are training AI models using the H20 chip, which is lower in spec compared to the cutting-edge H200 chip.

According to Bloomberg, the Biden administration estimated that controlling the export of the H20 would increase the cost of developing AI models in China by about 3-6%. NVIDIA is expected to see a loss of $12 billion (approximately 17 trillion won).

If the control of H20 chip exports is a measure to curb the development of China's AI technology, the delisting of Chinese companies from the New York Stock Exchange is interpreted as an intention to cut off the funding sources of tech companies. Politico reported that the Trump administration and the Republican Party are weighing the possibility of delisting Chinese companies listed on the US stock market.

According to the US-China Economic and Security Review Commission (USCC), as of last month, there were 286 Chinese companies listed on the US stock market with a market capitalization of $1.1 trillion (approximately 1,569 trillion won).

◇ Demanding 'US-China Choice'?

It is known that the Trump administration plans to pressure even allied countries to join the anti-China front. If they want to lower tariffs, they must expel Chinese companies that export indirectly through their countries and control the import of cheap Chinese products. President Trump also hinted in an interview today that he is considering a strategy to make countries choose between the US and China. This is evaluated as a strategy to isolate China in the global economy and to weaken China's negotiating power by bringing President Xi Jinping to the negotiating table with President Trump.

Since the US raised tariffs on China following the US-China trade war in 2018, Chinese companies have diversified their export routes to countries like Vietnam and Mexico. If the US lowers the mutual tariffs imposed on these countries through negotiations, the high tariffs on China could be neutralized. A senior government official evaluated that "to make the 145% tariff on China effective, it is essential to prevent Chinese goods from entering the US through other countries, and for this, the cooperation of other countries is essential."

The South Korean government is reportedly yet to receive specific requests from the US. However, if the US makes such a proposal, South Korea will face a difficult choice. Another government official said, "There are inevitable parts where South Korea's value chain is intertwined with China," adding, "We also have to consider the Chinese market." The US and China accounted for 18.7% and 19.5% of South Korea's total exports last year, respectively.

In negotiations, there is also a cautious view that it is necessary to examine how specific the US's related demands are before engaging in negotiations. It is currently unknown whether it will be an extreme demand such as not buying Chinese goods or an order to strengthen origin regulations to prevent 'switching labels' on Chinese products.

Kim In-yeop/Kim Ri-an Reporter inside@hankyung.com