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| US Allows Nvidia H200 Exports to China Under New AI Chip Policy |
In a significant policy shift affecting the global semiconductor and artificial intelligence sectors, the United States has approved exports of Nvidia’s H200 AI processors to the Chinese market under a structured framework that includes a 25% government fee. The decision, confirmed by U.S. President Donald Trump, has quickly become a major headline in the tech and geopolitical landscape as Washington attempts to balance national security priorities with commercial competitiveness in the AI race.
US Allows Nvidia H200 Exports to China: Start of a New Policy Approach
The approval marks a major turning point in U.S. technology export rules. It follows months of debate inside Washington about whether American semiconductor companies should be allowed to maintain their market dominance by selling high-performance chips to China. Nvidia’s H200 processors, considered its second-best AI chips after the Blackwell series, will now be permitted for shipment to China under strict national security conditions.
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According to President Trump, who announced the policy on Truth Social, the agreement includes a mandatory 25% fee collected by the U.S. government on each authorized export. Nvidia’s stock rose nearly 2% in after-hours trading following the announcement, after gaining 3% earlier in the day.
Trump stated that he had informed President Xi Jinping of the decision and received a “positive” response. The U.S. Commerce Department is currently finalizing the implementation rules, which will also apply to other AI chipmakers, including Advanced Micro Devices and Intel.
Nvidia H200 AI Chips and the Debate Over National Security
The decision arrives after months of internal divisions in Washington. Security officials have repeatedly warned that allowing more advanced AI chips into China could accelerate Beijing’s military modernization. Such concerns led the previous administration to impose strict export controls on high-performance processors like Nvidia’s A100, H100, and Blackwell units.
Critics argue that easing restrictions poses strategic risks. Former senior Commerce Department official Eric Hirschhorn described the shift as a “dangerous trade-off” between national security and commercial influence. Several U.S. senators also condemned the move, calling it a setback that could strengthen China’s industrial and military capabilities.
Despite these warnings, administration officials said the new framework reflects a middle-ground strategy: preventing China from acquiring Nvidia’s newest Blackwell chips while avoiding a complete ban that could advance domestic competitors such as Huawei.
China’s Reaction and the Geopolitical Calculations
A spokesperson for the Chinese foreign ministry commented that China supports a cooperative approach that brings mutual economic benefit. Local analysts also expect Beijing to ease pressure on Nvidia, especially after months of cautioning domestic companies against purchasing downgraded versions of U.S. chips such as the H20, L20, and RTX 6000D.
Experts at The Asia Group noted that the H200 chip offers far stronger performance than Nvidia’s downgraded models, making it significantly more attractive to Chinese tech firms. Given the positive signal from the Xi–Trump communication, they anticipate a more favorable regulatory climate for Nvidia in China.
However, analysts also warned that China remains committed to building an independent advanced chip industry, meaning the window for U.S. companies to dominate the market may narrow over time.
Market Impact: Nvidia, AMD, Intel and the AI Chip Competition
Nvidia welcomed the approval, stating that offering H200 chips to vetted commercial customers in China "strikes a thoughtful balance" that supports U.S. national interests. Intel declined to comment, and AMD did not issue a response.
Industry data highlights that the H200 delivers performance nearly six times greater than the H20—currently the most advanced AI chip legally sold in China. Meanwhile, Nvidia’s Blackwell processors used by U.S. AI companies outperform the H200 by factors ranging from 1.5 to tenfold depending on the workload.
This performance gap preserves a competitive advantage for U.S. firms while enabling limited commercial sales in China under regulatory oversight. The required security review in the United States before re-export also acts as a safeguard intended to prevent diversion to military applications.
Ongoing Concerns Over China’s Domestic AI Chipmakers
Washington’s policy shift comes as China accelerates domestic chip development. Major players such as Huawei Technologies, Cambricon, and Moore Threads continue to expand production and target AI workloads that previously relied heavily on Nvidia processors.
U.S. lawmakers, including Representative John Moolenaar, expressed concern that China might reverse-engineer Nvidia’s technology. He warned that Chinese companies could reproduce similar architectures, posing long-term competition risks for the American chip industry.
Despite these risks, analysts argue that blocking all exports could push Chinese buyers more aggressively toward domestic alternatives, ultimately undermining U.S. influence in global semiconductor markets.
As the global semiconductor landscape continues to evolve, the approval of Nvidia H200 chip exports to China signals a critical shift in U.S. policy. The move blends economic opportunity with a controlled security framework, shaping the next phase of AI competition between the world’s two largest economies.
The decision is set to influence the AI chip industry, reshape U.S.–China trade relations, and impact the strategic direction of global technology development in the years ahead.
