US Updates Policy on Advanced Tech 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 maintains US leadership 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 Navigates Pressure from Washington and Beijing
Nvidia, the world’s most valuable chipmaker, sits at the center of growing US–China tensions. 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 Responds to Policy Change
Nvidia welcomes the decision, saying it strengthens competition and supports high-paying US jobs. The company shared this statement with a major British news outlet. The H200 sits 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 prominent British broadcaster, that global users, including those in China, should access this technology. He also warns that China’s expanding chip ecosystem is rapidly closing the gap with the US. Nvidia calls the vetted-customer plan a balanced approach benefiting America. The company’s shares rose slightly after the announcement.
Security and Supply Chain Concerns
Trump writes on social media that “25% will be paid to the United States of America.” Journalists have asked the White House for clarification, and the plan may face opposition from national security hawks in Congress. Analysts say limited H200 sales give the US time to negotiate rare earth agreements with China and prevent global supply chain disruptions. China dominates rare earth processing, 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 Risks Highlighted by Experts
Observers note that Beijing previously urged 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.
