US Revises Rules for Technology 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 keeps the US ahead in artificial intelligence. The policy also covers other US chipmakers like AMD and follows lobbying from Nvidia CEO Jensen Huang, who recently visited Washington.
Nvidia Caught Between Washington and Beijing
Nvidia, the world’s leading chipmaker and most valuable company, faces pressure from both Washington and Beijing. 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. Following this, Beijing reportedly instructed local tech firms to stop buying Nvidia chips made for the Chinese market.
Industry Welcomes the Decision
Nvidia praises the move, saying it strengthens competition and supports 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 major British broadcaster, that global users, including those in China, should access this technology. He also warns that China’s growing chip ecosystem is quickly catching up to the US. Nvidia describes the vetted-customer plan as a balanced solution benefiting America. Shares rose slightly after the announcement.
Security and Supply Chain Risks
Trump writes on social media that “25% will be paid to the United States of America.” Reporters have asked the White House for clarification, and Congress may challenge the plan. Analysts say controlled H200 sales give the US time to negotiate rare earth agreements with China and prevent global supply chain disruptions. China dominates rare earth processing, which remains essential for electronics production. Experts note that access to H200 chips strengthens China’s tech sector but will not stop Beijing from reducing reliance on US suppliers.
Military Applications Raise Concern
Observers note that Beijing previously encouraged 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.
