• Treasury Secretary Scott Bessent indicates both the U.S. and China are seeking to de-escalate a protracted tech trade conflict.
  • A novel revenue-sharing arrangement for Nvidia and AMD chip exports to China is being framed as a blueprint for a pragmatic resolution.
  • The deal, brokered by the administration, aims to balance national security with economic interests but faces scrutiny over its legal authority.

U.S. Treasury Secretary Scott Bessent, the former hedge fund manager now steering economic statecraft, has signaled that a resolution to the punishing tech trade conflict with China may be within reach. The sense from the administration, according to Bessent, is that "both sides are ready for this conflict to end."

The clearest evidence of this shift is an unconventional, government-brokered deal announced on August 13. It allows chip giants Nvidia Corp. and Advanced Micro Devices Inc. to maintain crucial export access to the Chinese market under a new revenue-sharing model. In return for continued sales of certain advanced semiconductors, the U.S. companies would share a portion of the revenue from those Chinese contracts, creating a financial mechanism that aligns security and commercial interests.

People familiar with the matter describe the arrangement as a hard-fought compromise, suggesting that after months of escalating restrictions, both Washington and Beijing are motivated to avoid further economic disruption. The deal is seen within the administration as a potential template that could be applied to other contentious industries, from pharmaceuticals to critical minerals, where outright bans would cripple U.S. corporate profits.

“What we’ve achieved here is a pragmatic solution that protects our national security imperatives without forcing our world-leading companies to completely forfeit a key market,” Bessent was quoted as saying at a recent policy forum. The remarks, confirmed by two officials, underscore a distinct pivot from purely punitive measures toward negotiated, transactional outcomes.

However, the path forward is not without significant hurdles. The legality of the arrangement has been immediately called into question by policy experts and some lawmakers. Because the deal was negotiated directly between the executive branch and the companies, rather than established through legislation, it represents a significant expansion of administrative authority in trade policy. One congressional aide, speaking on the condition of anonymity, called the move “deeply troubling” and predicted swift scrutiny from relevant committees.

For now, the market is reacting positively to the reduced uncertainty. Shares in affected tech firms ticked up in afternoon trading following the Secretary's comments. The deal provides a measure of stability for an industry that has been whipsawed by export controls and geopolitical posturing for years. Efforts to reach Nvidia and AMD for additional comment were not immediately successful.

Whether this model can hold and be replicated remains the central question. It offers a short-term fix that cools immediate tensions, but it also sets a new and largely untested precedent for how the U.S. manages its most complex economic rivalries. The success or failure of this unusual bargain will likely determine the next phase of global tech competition.