President Trump stunned many in the tech world after announcing a controversial deal with chip makers,

Navidia, and advanced micro devices, allowing them to sell advanced artificial intelligence

chips to China in exchange for giving the U.S. government a 15% cut of their revenue.

Now there are questions about the legality of this deal and its implications for national

security and beyond. For more on this, I'm joined by Scott Kennedy, senior advisor in Chinese

business and economics at the Center for Strategic and International Studies. Scott, welcome and

thanks for joining us. Let's just start with your take on this deal itself for the U.S. to be taking

a 15% cut of these private companies'

sales to China. Is there precedent for it and is it legal?

I have never heard of a deal like this. As long as I've been watching U.S. government

business relations or the tech industry, the U.S. government business relations or the tech industry,

the U.S. government taking a cut of exports, I think it's pretty unprecedented. We know the president

is a source of a lot of creative ideas. I don't think this is necessarily the best one that he's come

up with. It has huge implications for the semiconductor industry and actually

all of high tech as well as the export control regime as well.

And is it clear that it's a legal deal? Is the legality issue still at play here?

Well, if you read the Constitution and look at Article 1, Section 9, you will see that

the U.S. is not supposed to impose export taxes on American companies.

Now, it says Congress is not supposed to, and Congress has not had. This is the president asking for this.

But it would require someone to challenge this in court for it to be determined to be unconstitutional.

And there's a lot of things the Trump

administration has done where people take issue with it and it gets to the courts and they either

...