The United States has just forbidden NVIDIA to export its H20 chips to China and caused a shock wave on the markets. This decision leads to a colossal loss of $ 5.5 billion for the American technology giant. With Trump, we witness a trade war to the complete economic war between the United States and China.
In short
- The United States forbids the exports of the NVIDIA H20 to China, causing a $ 5.5 billion loss for the company.
- This decision is a new escalation in the technology war aimed at domination of artificial intelligence.
- This crisis could be deeper than in 2008 and question the superiority of the dollar.
- The global economic department is close to creating two different technological blocks: USA vs. China.
Nvidia collapses after Trump’s decisions
On Tuesday, April 15, Nvidia announced and Exceptional load of $ 5.5 billion Associated with a ban on exporting H20 chips to China. This decision of the United States Government represents much more than just financial losses for society. It symbolizes radical hardening of American position against Beijing.
After this announcement, the NVIDIA title dropped by 6 %, which caused the entire Nasdaq to lose 2 % before the market opening. This reaction illustrates the strategic importance of this company, which is considered to be a technology flagship from 2024 with an exceptional performance on the stock market.
This restriction is not trivial. Previously, NVIDIA could export less strong chips to China, while the most advanced were reserved for the US market and its allies. Now the US government requires Immediately compulsory license For any export of chip to China, including those that are specially designed to circumvent the previous restrictions.
Trump declares a technological war
What has started with the duty managed by Trumps is now developing towards strategic technological confrontation. The United States is no longer satisfied with the taxation of Chinese products, now trying to block access from China to Battle of domination in AIHe considered another industrial revolution.
This year, Deepseek has described ghosts. This Chinese start-up, with several means, has made considerable progress in artificial intelligence and shakes American trust. This event followed by the first NVIDIA collapse can be considered a trigger to start this crisis on the stock market.
The US administration that advises Elon Musk justifies his strategy by the need Preserve your technological superiority Face in the face of a competitor perceived as a threat. With this ban, Washington tries to maintain decisive progress in the AI area by depriving the opponents for the components necessary for its technological development.
To the multipolar world
We are witnessing the origin and a deep separation between two superpowers Which goes far beyond the Nvidia case. This phenomenon is already observed for Huawei, whose products are banned in the United States for national security reasons.
This department includes duplication of production chains, standards and infrastructure. Eventually the countries may be forced to choose their camp according to the principle “Either you are with us or are you against us”. A philosophy that resembles the rhetoric of the Bush era after September 11th.
The consequences for the global economy are considerable. Consumers can pay more for their products due to this duplicity. Innovation could also slow down and reduce business margins. Some analysts do not hesitate to talk about End of globalization As we knew, in favor of the world organized Two closed geopolitical blocks.
Trump to upset the markets
This new geopolitical reality leads to a deep interrogation of the award on the stock market. Tech and Nvidia are traditionally evaluated according to their expected future benefits. Closing the Chinese market now requires a Lower revision of profits is expected for many companies.
The technological sector exceeds the impact. LVMH is also subject to a sharp decline, a sign that markets expect overall economic slowdown associated with this fragmentation. Despite the recently achieved low points, the trend may persist if the market has not fully reinforced this new agreement.
Unlike the 2008 crisis, focused on the financial sector, we face a systemic crisis that challenges the foundations of the global economy. The Unprecedented shock for markets It could take much longer than a simple technical accident, with a temporary rebound in a generally negative trend.
At the end of the dollar?
In addition to stock markets, this Chinese American confrontation could affect the dollar superiority as a global reference currency. Traditionally, in times of uncertainty, investors turned to American commitments, considered to be an active refuge for par excellence.
For the first time, this dynamics seems to be questioned. American public debt no longer attracts investors who are afraid of their long -term sustainability. At the same time, China is actively developing its digital Juan to compete with the dominance of the dollar.
If US interest rates increase sharply due to loss of confidence in US debt, the burden of this debt would explode, which could lead to a much more serious crisis than we now know. The stain therefore exceeds the framework of a simple trading conflict.
In this context with a global economic shock induced by Trump, the Nvidia case appears to be an alarm signal announcing deeper transformation. Therefore, caution remains for investors, although opportunities may appear in this new fragmented geopolitical landscape. Because for the markets it is a dollar place that is questionable.
Maximize your Cointribne experience with our “Read to Earn” program! For each article you read, get points and approach exclusive rewards. Sign up now and start to accumulate benefits.
Every day I try to enrich my knowledge of this revolution that will allow humanity to proceed in its conquest.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.