Former US President Donald Trump has cleared the way for Nvidia to export its advanced H200 chip to China, marking a major easing of Washington’s export controls targeting Chinese technology.
Trump announced that he informed Chinese President Xi Jinping about the decision, which includes an arrangement requiring 25 percent of sales revenue to be paid to the US government. The exports will be allowed only to “approved customers” under conditions designed to protect national security. Similar policies are expected for other major chipmakers, including AMD and Intel.
“This policy will support American jobs, strengthen U.S. manufacturing, and benefit American taxpayers,” Trump said.
Nvidia, headquartered in Santa Clara, California, described the move as a “thoughtful balance” that would support high-paying jobs and domestic manufacturing. Following the announcement, Nvidia shares jumped over 2 percent in after-hours trading.
The decision represents a major departure from the previous administration, which restricted Nvidia and other chipmakers to exporting downgraded versions of their products to China. Trump criticized that approach, claiming it forced US tech companies to invest billions in products that were largely unwanted.
The H200 chip, launched in 2023, is Nvidia’s most powerful chip outside its latest Blackwell series and is nearly six times more powerful than the previous H20 model. Under a prior arrangement, Nvidia paid 15 percent of H20 sales revenue to the US government to comply with restrictions for China.
Experts say Trump’s decision reflects both market realities and lobbying efforts by Nvidia CEO Jensen Huang. The focus is shifting from blocking China’s tech development to competing for market share and securing commercial benefits.
“This move signals a shift from restricting China to boosting American tech competitiveness while capturing revenue,” said Tilly Zhang, a Chinese tech expert.
However, the announcement drew sharp criticism from Democratic lawmakers. Senator Elizabeth Warren accused Trump of “selling out US security” by allowing advanced AI chips to reach China despite prior warnings about illegal shipments.
Tech policy experts warned that easing export controls could allow Chinese AI firms to catch up with US models, strengthen global cloud computing infrastructure, and potentially weaken US leadership in artificial intelligence.
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