Trump allows Nvidia to ship H200 AI chips to China, aims to keep US ahead

The controlled sale of Nvidia's H200 chips to China will carry a 25% US charge, with Trump arguing that the plan safeguards innovation, supports workers and keeps America ahead in the global AI race

US President Donald Trump has cleared Nvidia to export its H200 artificial intelligence chips to authorised customers in China. The move eases some curbs on AI chips, but the US President maintained that national security safeguards remain the top priority.

 

The decision comes amid longstanding US concerns that advanced semiconductor sales could aid China’s rapid AI development and undermine American technological leadership.

 

The H200 is designed for high-performance computing and AI training, though it is not Nvidia’s most advanced chip. The company’s top-tier Blackwell processors and the forthcoming Rubin line remain off-limits for Chinese buyers under current rules.

 

Chief executive officer Jensen Huang has forged a close relationship with Trump since the November 2024 election and has argued that restrictions only strengthen Chinese domestic champions such as Huawei Technologies.

 

Trump claims move boosts US economy

 

In a message posted on his social media platform, Trump said he had informed Chinese President Xi Jinping of the move and received a positive response. He said controlled sales would help protect American interests by boosting domestic employment, strengthening US manufacturing supply chains and delivering economic returns to taxpayers. Under the new policy framework, a 25 per cent fee will be paid to the US on approved exports, he said.

 

Trump used the announcement to criticise the previous administration’s strategy, claiming that President Joe Biden’s export controls forced US companies to spend billions developing “degraded” products that global customers did not want. He said such measures slowed innovation and harmed American workers. Declaring that “the era is over”, Trump pledged to keep jobs at home, reinforce national security and ensure the US stays ahead in the global AI race.

 

More approvals likely soon

 

Trump also said Nvidia’s American clients are already progressing with the more powerful Blackwell chips, with Rubin expected soon, neither of which are included in this agreement. He added that the Commerce Department is close to finalising further export arrangements for other US semiconductor manufacturers, including Advanced Micro Devices (AMD) and Intel, under similar conditions.