U.S. President Donald Trump¡¯s decision to approve previously banned exports of Nvidia Corp.¡¯s powerful H200 artificial intelligence chips to China could turbocharge the People¡¯s Liberation Army¡¯s technological ambitions, narrowing America¡¯s edge in military supremacy.

Over time, this risks shifting the balance of power in the Indo-Pacific, the primary region in which Washington competes with Beijing for influence and power.

It¡¯s still unclear how far the deal will go. Chinese regulators are reportedly keen to limit access to the chips to keep domestic developers on the path toward to self-sufficiency in semiconductor production. Trump says that President Xi Jinping has responded favorably to the move. The plan would be for shipments to go to as-yet unspecified ¡°approved customers.¡±