The United States will allow Nvidia’s H200 AI chips to be exported to China, President Donald Trump announced Monday, marking a major shift in US tech policy and igniting fresh debate over the balance between national security and trade.
Trump said exports would occur “under conditions that allow for continued strong National Security,” with a 25% fee collected under a Commerce Department framework. The same rule will apply to AMD and Intel, effectively reopening limited access to advanced US chips for select Chinese buyers.
The decision comes after months of internal debate over whether the US should prioritize AI innovation and revenue or block China’s access to leading chips. The H200, built in Taiwan, is nearly six times more powerful than the H20 — previously the most advanced chip allowed in China.
Nvidia shares jumped 2% in after-hours trading following Trump’s Truth Social post. The president said he had informed China’s President Xi Jinping, who “responded positively.” A White House official confirmed that the 25% levy would be collected as an import tax before security review and export approval.
In a statement, Nvidia called the arrangement “a thoughtful balance that is great for America.” The Commerce Department and AMD declined to comment, while Intel remained silent.
The move immediately drew criticism in Washington. Several Democratic senators labeled it “a colossal national security failure,” while Republican Representative John Moolenaar warned that “China will rip off the technology, mass-produce it, and seek to end Nvidia as a competitor.”
Experts say the decision reflects a pragmatic trade-off. Denying all AI chips to China could have accelerated Huawei’s domestic alternatives, while allowing limited H200 sales may preserve US market influence.
Still, US officials remain wary that AI processors could aid China’s military modernization — the very concern that drove earlier export limits.
China, meanwhile, welcomed the announcement. The foreign ministry said Beijing values “mutual cooperation,” and analysts expect regulators to soften restrictions on Nvidia, given Trump’s direct engagement with Xi.
According to The Institute for Progress, the H200 remains powerful but is still outperformed by Nvidia’s Blackwell chips, which will remain restricted to US customers.
As one Beijing-based analyst put it: “This is a short-term opening. China will quietly buy what it can — but it won’t stop building its own.”
Related: ByteDance and Alibaba Rush to Order Nvidia’s H200 Chips After Trump’s Approval
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