The United States will allow Nvidia to export its H200 processors to China. These processors are the company’s second most advanced artificial intelligence chips. President Donald Trump announced that the US government will also collect a 25 per cent fee on these sales.
The decision aims to settle a debate in the US about whether companies like Nvidia should continue selling advanced chips to China or hold back to protect national security. China has already advised its companies not to use US technology. It is still uncertain whether the new decision will lead to fresh sales.
Nvidia shares rose after the announcement. The rise continued in after hours trading after Trump posted the update on Truth Social. He said he had informed President Xi Jinping of China about the move and that he “responded positively”. He added that the US Commerce Department is finalising the details and that the same plan would apply to other chip makers including Advanced Micro Devices and Intel.
Trump stated in his post that the fee would be “25 per cent”, which is higher than the earlier proposal of 15 per cent. He said, “We will protect National Security, create American Jobs, and keep America’s lead in AI.” He also noted that new Blackwell and Rubin chips used in the US are not part of this arrangement.
The government has not revealed how many H200 chips will be authorised for export or what conditions will apply. A White House official said the fee would be collected as an import tax when the chips move from Taiwan to the United States. The chips will undergo a security check before being exported to China.
Some officials see this as a compromise. The aim is to avoid sending Nvidia’s latest Blackwell chips to China but also avoid sending no chips at all. They believe a complete ban would help Huawei increase its presence in the Chinese market.
A statement from Nvidia said the approach “strikes a thoughtful balance that is great for America.”
Concerns continue in the US about China using advanced chips to strengthen its military. Some lawmakers have criticised the decision. Others believe China will still want the H200 because it performs better than any chip made in China.
Meanwhile, China has been attempting to reduce its dependence on Nvidia. It recently warned local companies about buying the downgraded versions available in the Chinese market.
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