The US government has approved Nvidia’s sale of advanced artificial intelligence chips to China. The Department of Commerce announced the decision on Tuesday. Officials said they reviewed domestic chip supply before acting. The move loosens previous export restrictions on high-end technology.
Washington had blocked the sales over national security concerns. Officials warned the chips could strengthen China’s technology sector and military. The new policy lifts some restrictions under strict conditions. Authorities described the change as cautious and controlled.
H200 processors approved for export
The approval applies to Nvidia’s H200 processors. The chip ranks as the company’s second-most-advanced AI product. Regulators had previously blocked Chinese buyers from acquiring it. The new rules allow shipments to resume.
The Commerce Department said exports depend on sufficient US supply. Officials want to protect domestic access to the chips. Regulators said they will continue close monitoring. The policy also applies to less advanced Nvidia processors.
Security and military rules remain
The Bureau of Industry and Security set strict requirements for Chinese buyers. Customers must implement strong security measures. Authorities prohibit any military use of the chips. Officials said enforcement will remain active.
Regulators warned violations would trigger penalties. The rules aim to reduce national security risks. Officials described the policy as balancing trade and protection.
Trump backs controlled sales with government fee
President Donald Trump said last month he would allow sales to approved Chinese buyers. He added that the US government would collect a 25 percent fee. Trump described the plan as a safeguard for American interests. He framed it as limited access rather than full permission.
Nvidia welcomed the decision through a spokesperson. The firm said the move would support US manufacturing and jobs. Executives said broader export access strengthens American competitiveness.
China criticizes US export restrictions
A Chinese embassy spokesperson said Beijing opposes politicized technology trade. He said restrictions disrupt industrial and supply chains. The spokesperson added that the approach harms shared interests. Chinese officials have repeated similar statements.
The comments highlight ongoing tensions between the two countries. Both governments view artificial intelligence as strategically critical. The issue remains central to broader trade and security disputes.
Nvidia at the center of US-China rivalry
Nvidia sits at the center of the US-China AI race. The company has faced shifting rules from both governments. Trump reversed previous sales restrictions last July. He then demanded a share of Nvidia’s China revenue.
After that move, Beijing reportedly told tech firms to avoid Nvidia chips. Authorities encouraged companies to prioritize domestic semiconductors. The strategy aimed to strengthen China’s chip industry. Analysts say Chinese chips still lag behind US designs.
Blackwell chips remain blocked
The H200 chip is one generation behind Nvidia’s Blackwell processor. Analysts consider Blackwell the world’s most advanced AI chip. US authorities continue to block its sale to China. Officials cited higher security risks.
The restriction shows the limits of the policy shift. Washington continues to protect its most powerful technology. The decision reflects a cautious strategy.
Lobbying and market effects
During 2025, Nvidia CEO Jensen Huang lobbied US officials for approval. He argued that global market access strengthens US leadership. Huang said export restrictions weaken competitiveness.
Some US officials disagreed. They warned the chips could benefit China’s military. Others feared harm to US AI progress.
Semiconductor analyst Austin Lyons said Chinese firms will pursue H200 chips. He said demand will last until domestic alternatives improve. Lyons noted Nvidia will accept lower margins on China sales. He added that government fees will reduce profits.
Potential precedent for trade policy
Marc Einstein from Counterpoint Research described Trump’s plan as unusual. He said taking a direct cut of sales could set a precedent. Einstein suggested the model may influence future trade negotiations. Other sectors could face similar arrangements.
