Trump administration to allow Nvidia to sell H200 AI chips to China

US President Donald Trump announced that he has authorized Nvidia to sell its powerful H200 artificial intelligence chip to China, in exchange for 25% of the revenue.

This was a major win for the US chipmaker after weeks of internal deliberations.

In a statement on Truth Social, Trump wrote, “I have informed President Xi of China that the US will allow NVIDIA to ship its H200 products to approved customers in China and other countries, under conditions that will ensure the strong continuation of national security,” adding that his counterpart “responded positively.”

The decision to allow H200 sales in China is a significant boost for Nvidia CEO Jensen Huang, who visited the US Congress and met with Trump personally.

An Nvidia spokesperson confirmed the deal in a statement, calling it “a sensible balance that is great for America.”

This policy decision came after weeks of internal debate over how much to relax chip restrictions and whether selling chips to China would “serve American interests or pose a security risk.”

A White House official described the move to POLITICO as a “compromise position,” noting that Nvidia’s efforts to secure approval for the sale of more advanced chips had fallen short.

Members of Congress expressed concern that lifting restrictions on the export of the chips would give Beijing a technological advantage against the US, and Democrats are already reacting to the move.

In a statement, Senate Banking Committee member Elizabeth Warren claimed, “This risks accelerating China’s efforts for technological and military dominance and undermining US economic and national security.”

Warren called on Congress to pass a bipartisan bill to rein in the administration and said that members of Congress should demand that Huang provide sworn public testimony on the matter.

The move has also created unease among technology and defense policy experts in Washington, who warn that it could jeopardize America’s leadership in this emerging field.

Chris McGuire, a China expert at the Council on Foreign Relations (CFR), described the decision as a “major, self-inflicted wound” that could lead to the country losing its leadership in artificial intelligence, depending on how many H200 chips the US sells to China and how quickly this translates into access to other more advanced chips.

McGuire served on the National Security Council under the Joe Biden presidency and at the State Department under the Trump presidency, focusing on technology and China issues in both roles.

Trump’s post added that Nvidia’s top-tier Blackwell and upcoming Rubin chips were not included in the deal, reflecting the administration’s decision to keep the most advanced artificial intelligence (AI) hardware restricted.

Trump wrote, “My administration will always put America FIRST. The Commerce Department is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American companies.”

Huang has established a close relationship with Trump since the 2024 election, using it to warn that strict export limitations would only strengthen Chinese competitors like Huawei.

According to POLITICO, a key uncertainty remains: whether Nvidia can find Chinese buyers for these chips. Beijing has previously expressed security concerns about other Nvidia semiconductors.