White House Adjusts High-Tech Export Rules
US President Donald Trump now permits Nvidia to sell its H200 AI chips to “approved customers” in China. He says the move protects national security, supports American jobs and keeps the US ahead in artificial intelligence. The policy also covers other US chipmakers like AMD and follows strong lobbying from Nvidia chief Jensen Huang, who visited Washington last week.
Nvidia Navigates US–China Tensions
Nvidia, the world’s top chipmaker and most valuable company, stands at the centre of a growing rivalry between Washington and Beijing. The firm once faced a ban on selling its most advanced chips to China. Trump reversed that ban in July but demanded that Nvidia pay 15% of its China revenue to the US government. Beijing then reportedly told local tech companies to stop buying Nvidia chips built for the Chinese market.
Industry Backs the New Approach
Nvidia welcomes Trump’s decision and says it strengthens competition and supports high-paying US jobs. The company shared this message in a statement to a major British news outlet. The H200 chip is one generation behind Nvidia’s Blackwell model, which experts view as the world’s most advanced AI semiconductor. 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 expanding chip ecosystem places it close behind the US. Nvidia praises Trump’s approach again and calls the plan for vetted customers a balanced solution that benefits the US. The company’s shares rose slightly after the announcement.
Security Fears and Resource Politics
Trump claims on social media that “25% will be paid to the United States of America.” Reporters have contacted the White House for clarity, and the plan may face resistance from national security hawks in Congress. Analysts say that controlled H200 sales give the US time to negotiate rare earth deals with China and help prevent major supply chain disruptions. China dominates rare earth processing, which remains vital for global electronics. Experts add that access to H200 chips will boost China’s tech sector but will not stop Beijing from reducing its reliance on US suppliers.
Warnings Over Military Use of AI Chips
Observers note that Beijing earlier urged local firms to reject Nvidia’s older H20 chips and buy 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 build AI-enabled systems. Analyst Cole McFaul says easier access to high-end chips helps China deploy AI systems for military purposes. He argues that Beijing aims to use advanced chips for battlefield advantage.
