U.S. to Permit Nvidia H200 Chip Exports to China Under Specific Conditions

The U.S. Department of Commerce is set to permit Nvidia to export its H200 artificial intelligence (AI) chips to China, according to sources familiar with the plan. This decision follows a recent trade agreement between President Donald Trump and Chinese leader Xi Jinping, aiming to balance economic interests with national security concerns.

Under the new policy, Nvidia will be allowed to sell H200 chips—one generation behind its latest Blackwell models—to approved Chinese commercial customers. These transactions will be subject to a 25% revenue share with the U.S. government. President Trump announced the move on Truth Social, stating it aligns with national security interests while supporting American jobs and technological leadership.

The Commerce Department is finalizing the details of this policy, which will also apply to other major American tech firms, including AMD and Intel. The decision represents a partial easing of previous restrictions on advanced chip exports to China.

Nvidia has expressed support for the decision, emphasizing its potential to sustain high-paying jobs and manufacturing in the U.S. However, the move has sparked criticism from some lawmakers. Senator Elizabeth Warren argued that it could enhance China’s military and technological capabilities, raising concerns among U.S. national security experts.

Chinese regulators had previously summoned Nvidia over security concerns related to its H20 chip, though Nvidia denied any backdoors. Analysts suggest Chinese firms will likely accept the export deal, though Beijing's reaction remains uncertain due to concerns over dependency and national pride.

The U.S. Commerce Department is currently finalizing the terms of this policy, which is part of a broader compromise that avoids sending the latest Blackwell chips to China while maintaining market access.