U.S. export restrictions on tech to China still exist. But on those items, Chinese companies can simply turn to friendlies in Singapore. Or, like the pirates of old, China can create a black market for chips. Some Nvidia chips faced export restrictions even in the Biden years.

Experts and people familiar with the matter said the surprise deal, in which Nvidia and Advanced Micro Devices agreed to pay 15% of their revenues from Chinese artificial intelligence chip sales to the U.S., provides a path to enter the Chinese market despite severe export controls, tariffs and other trade barriers.

The government will take a 15% cut of the revenue the chip makers generate by selling certain chips to China, according to media reports.