Core Viewpoint - The article discusses a new agreement between Nvidia and AMD with the U.S. government, where both companies will pay 15% of their revenue from chip sales to China to the U.S. government in exchange for export licenses, raising concerns about the implications for international trade and U.S. companies [1][2][5]. Group 1: Agreement Details - Nvidia and AMD have agreed to allocate 15% of their revenue from chip sales to China to the U.S. government to obtain export licenses [1]. - If sales were calculated without restrictions, Nvidia could earn $23 billion in China by 2025, resulting in a $3.45 billion cost due to the 15% cut [2]. Group 2: Implications for U.S. Companies - The 15% cut is seen as a political risk premium rather than a reflection of market value or production costs, potentially leading to increased costs for U.S. companies [6]. - If this model is extended to other high-end industrial products, it could significantly raise costs for U.S. firms, making them less competitive against foreign companies [9]. Group 3: Potential Global Impact - The introduction of such a fee could lead to a breakdown of established international trade rules, as other countries might follow suit and impose similar fees on U.S. exports [10][12]. - The article warns that this could lead to a fragmented global trade system, where countries impose unpredictable fees, ultimately harming international cooperation and trade efficiency [12][14].