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.

Trump said Monday that he has cut a deal with chipmaker Nvidia, allowing it to sell certain artificial intelligence chips to China in exchange for a cut of the revenue, which would go to the U.S. government. Trump said he also negotiated a similar deal with chipmaker Advanced Micro Devices (AMD).