US Revises Rules for High-Tech Exports
US President Donald Trump now allows Nvidia to sell its H200 AI chips to “approved customers” in China. He says the move protects national security, supports American jobs, and maintains the US lead in artificial intelligence. The decision also includes other US chipmakers like AMD and follows lobbying by Nvidia CEO Jensen Huang, who visited Washington last week.
Nvidia Navigates Geopolitical Pressure
Nvidia, the world’s leading chipmaker and most valuable company, remains at the center of US–China tensions. The firm previously faced a ban on selling its most advanced chips to China. Trump lifted the ban in July but required Nvidia to pay 15% of its China revenue to the US government. Beijing then reportedly told local tech firms to stop buying Nvidia chips made for the Chinese market.
Industry Supports the New Policy
Nvidia welcomes the decision, saying it strengthens competition and protects high-paying US jobs. The company shared this statement with a major British news outlet. The H200 is one generation behind Nvidia’s Blackwell chip, widely regarded as the world’s most advanced AI semiconductor. Jensen Huang said in September during an interview with a well-known British broadcaster that global users, including those in China, should access this technology. He also warns that China’s developing chip ecosystem is quickly closing the gap with the US. Nvidia calls the vetted-customer plan a balanced approach that benefits America. The company’s shares rose slightly after the announcement.
National Security and Supply Chain Risks
Trump writes on social media that “25% will be paid to the United States of America.” Journalists have sought clarification from the White House, and Congress may challenge the plan. Analysts say limited H200 sales give the US time to negotiate rare earth deals with China and prevent global supply chain disruptions. China dominates rare earth processing, which is vital for electronics production. Experts note that access to H200 chips will boost China’s tech sector but will not stop Beijing from reducing dependence on US suppliers.
Concerns Over Military Applications
Observers note that Beijing previously urged local firms to reject Nvidia’s older H20 chips and adopt domestic alternatives. Researchers at Georgetown University’s Center for Security and Emerging Technology warn that China’s military already uses advanced US-designed chips to develop AI-enabled systems. Analyst Cole McFaul says easier access to high-end chips helps China deploy AI systems for military purposes and gain battlefield advantages.
