**NVIDIA AI Chip Export Approval to China: “We Do Not Want a Global Digital Silk Road”**
**”Arranging Meeting with Chinese Vice Premier He Lifeng… No Need to Worry Post-Tariff Truce”**
(Washington = Yonhap News) Correspondent Kim Dong-hyun – U.S. Treasury Secretary Scott Besant announced that the search for a successor to Jerome Powell, the Chairman of the U.S. Federal Reserve, has already begun. Besant stated that Powell should step down from his position as a Fed Board member once his chairmanship ends, as customary.
In a Bloomberg TV interview on the 15th (local time), Besant commented on the selection of the next Fed Chair, saying, “The official process has already started. There are many excellent candidates, and we’ll see how quickly this progresses. The decision will be made by President Trump, according to his pace.”
He added, “I am involved in the decision-making process, but the final decision will be President Trump’s.”
When asked whether Powell would step down from the Board after his chairmanship ends, Besant replied, “Traditionally, the Fed Chair has also stepped down from the Board. Having a former Chair remain at the Fed would be very confusing for the market.”
According to Bloomberg, while Powell’s term as Chair ends in May next year, he could continue to influence monetary policy decisions as a Fed Board member until January 2028.
Powell has been repeatedly asked if he would remain on the Board after his term as Chair, but he has not provided a definitive answer. Bloomberg noted that his potential continuation complicates President Trump’s decisions regarding the Fed’s restructuring next year.
If Powell remains on the Board, President Trump will only be able to replace Adriana Kugler, whose term ends in January.
Besant confirmed that the Trump administration has approved Huawei and other Chinese manufacturers to export NVIDIA’s AI chip H20 to China, as they already have equivalent chips. “With equivalent chips available, NVIDIA’s H20 can be sold,” he stated.
He further remarked, “We do not want China or any other country to replace our American semiconductor manufacturers and suddenly create a global Digital Silk Road.”
NVIDIA has argued that restricting AI semiconductor exports to China and other countries would encourage China’s own development and domination in the global market, advocating for eased export controls.
Besant also anticipated meeting with Chinese Vice Premier He Lifeng in the coming weeks, indicating ongoing efforts to coordinate schedules for a meeting in a third country.
When asked if U.S.-China trade dialogues could progress to the next stage before the ‘tariff truce’ expires, he replied, “We are in a very good position, and I tell market participants not to worry about August 12th (the truce deadline).”