US Resets Rules for Advanced Technology Exports
US President Donald Trump now authorises Nvidia to sell its H200 AI chips to “approved customers” in China. He says the step protects national security, supports American jobs and preserves the US lead in artificial intelligence. The decision also applies to other US chipmakers like AMD and follows strong lobbying from Nvidia chief Jensen Huang, who visited Washington last week.
Nvidia Balances Pressure from Washington and Beijing
Nvidia, the world’s most valuable company and top chip producer, remains caught between the US and China. The firm once faced a ban on selling its most advanced chips to China. Trump lifted that ban in July but required Nvidia to pay 15% of its China revenue to the US government. Beijing then reportedly told local tech firms to stop buying Nvidia chips designed for the Chinese market.
Chip Industry Welcomes the Shift
Nvidia supports the move and says it strengthens competition and protects high-paying US jobs. The company expressed this view in a statement to a major British news outlet. The H200 stands one generation behind Nvidia’s Blackwell chip, which analysts call the most advanced AI semiconductor worldwide. Jensen Huang said in September during an interview with a well-known British broadcaster that global users, including those in China, should access this technology. He also warns that China’s maturing chip ecosystem places it close behind the US. Nvidia praises Trump’s new policy again and calls the system for vetted customers a balanced solution that benefits the US. The company’s shares rose slightly after the announcement.
Concerns Over Security and Supply Chains
Trump writes on social media that “25% will be paid to the United States of America.” Reporters have asked the White House to clarify the plan, which may face resistance in Congress from national security hawks. Analysts say the controlled sale of H200 chips gives the US time to negotiate rare earth agreements with China and helps prevent global supply chain shocks. China dominates rare earth processing, which remains essential for electronics production. Experts say access to H200 chips will strengthen China’s tech sector but will not stop Beijing from reducing its dependence on US suppliers.
Experts Warn About Military Applications
Observers note that Beijing earlier urged local firms to reject Nvidia’s older H20 chips and shift to domestic semiconductors. 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 weapons systems. Analyst Cole McFaul says easier access to high-end chips helps China deploy AI systems for military use. He argues that Beijing aims to use advanced chips for battlefield advantage.
