Trump gives Nvidia green light to sell advanced AI chips to China

December 9, 2025

President Trump has decided to permit Nvidia and other US chip manufacturers to sell advanced H200 chips to vetted Chinese customers, reversing previous export restrictions. This decision follows intensive lobbying efforts by Nvidia CEO Jensen Huang and includes a requirement that companies pay either 15% or 25% of their Chinese revenues to the US government, though the exact figure remains unclear. The policy aims to balance American economic interests and job creation with national security concerns, allowing sales only to customers approved by the Department of Commerce.

Who is affected

Nvidia and AMD (US chip companies)
Nvidia CEO Jensen Huang
"Approved customers" in China who can now purchase H200 chips
Chinese tech companies previously ordered to stop buying Nvidia chips
US Department of Commerce (vetting customers)
Chinese technology sector broadly
China's People's Liberation Army
National security hawks in Congress
American workers in the chip industry

What action is being taken

President Trump is allowing Nvidia to sell H200 chips to approved customers in China
The Department of Commerce is vetting commercial customers for approval
Nvidia is offering H200 chips to vetted customers
Companies are required to pay a percentage (15% or 25%, exact figure unclear) of Chinese revenues to the US government

Why it matters

This decision represents a significant shift in US-China technology policy with both economic and security implications. It allows American chip companies to compete in the lucrative Chinese market while maintaining jobs and manufacturing in the US, helping preserve America's leadership in AI technology. However, security experts warn it could enable China's military to develop AI-powered battlefield capabilities using advanced US-designed chips. The policy also provides leverage for broader negotiations over rare earth minerals, where China holds a near-monopoly on processing capabilities essential for electronics production. The decision illustrates the ongoing tension between protecting national security interests and maintaining America's competitive position in the global semiconductor industry.

What's next

The arrangement will likely face opposition from national security hawks in Congress. China is expected to continue working towards reducing dependence on US chip technology despite gaining access to H200 chips. According to Alex Capri, the sale "buys time" for the US to negotiate a deal with Beijing over rare earths and prevent major disruptions to global supply chains.

Read full article from source: BBC