Trump Administration Greenlights Nvidia H200 AI Chip Exports to China with Strict Terms
The United States government under President Donald Trump has made a significant policy shift. The administration will now allow Nvidia's H200 artificial intelligence chips to be sold to Chinese buyers. This decision comes with several important conditions designed to protect American interests.
Key Conditions and Financial Benefits for the US
American authorities have imposed strict rules on these exports. The US government will take a twenty-five percent cut on all sales of H200 chips to China. Export caps will also limit shipments to ensure adequate domestic supply.
President Trump addressed the decision publicly. He acknowledged that Nvidia has already developed newer, more advanced chips called Blackwell and Rubin. However, he emphasized the financial benefits for America.
"It's not the highest level technology," Trump stated, "but it's a pretty good level. China wants these chips, other countries want them too, and we're going to be making twenty-five percent on every sale. That's good for America."
Regulatory Safeguards and Compliance Requirements
The Department of Commerce published detailed requirements on Tuesday. Exporters must follow several key rules:
- Companies must certify that sufficient H200 chips remain available for American customers before exporting to China.
- Shipments to Chinese buyers cannot exceed fifty percent of the volume sold to US customers.
- All chips must undergo independent third-party testing within the United States before shipping overseas.
- Chinese customers must meet specific security procedure standards set by American authorities.
The regulatory filing also mentioned AMD's MI325X chip, which will face similar export restrictions. These measures aim to balance commercial opportunities with national security concerns.
Nvidia's Response and Production Restart
Nvidia has welcomed the Trump administration's decision. The semiconductor giant believes this approach balances competitiveness with national security priorities.
"Offering H200 chips to approved commercial customers, properly vetted by the Department of Commerce, strikes a thoughtful balance that benefits America," the company stated.
Nvidia CEO Jensen Huang recently spoke at the Consumer Electronics Show 2026. He revealed that Chinese demand for these chips remains very high. In response to this demand and the new policy, Nvidia has restarted production of H200 chips.
"We've fired up our supply chain," Huang confirmed. "H200 chips are now flowing through our production lines again."
Understanding the H200 Chip and Chinese Market Dynamics
The H200 belongs to Nvidia's Hopper generation of high-performance chips. Unlike the earlier H20 chip, which was deliberately slowed down for export markets, the H200 was not designed specifically for China. It represents capable, though not cutting-edge, technology by current standards.
Despite American approval, uncertainty remains about whether Chinese regulators will permit these imports. Beijing has actively promoted domestic AI chip development, even though Chinese alternatives currently lag behind Nvidia's technology.
Jensen Huang expressed caution about expecting official announcements from China. "We don't anticipate formal statements," he noted. "What we look for are purchase orders from Chinese customers."
The situation highlights the complex interplay between global technology markets, national security considerations, and economic interests in the semiconductor industry.
