Restrictions to be lifted: Trump announces sale of NVIDIA H200 AI chips to China
Photo: Donald Trump and Xi Jinping (Getty Images)
US President Donald Trump has announced the removal of export controls on NVIDIA H200 chips, allowing their supply to China, according to CNN.
"I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security. President Xi responded positively!" Trump wrote in the post.
CNN notes that the advanced chips are crucial for performing artificial intelligence workloads.
Trump wrote that NVIDIA’s highly demanded Blackwell chips and the next-generation Rubin chips are not part of the agreement.
In his announcement, he also stated that "25% will be paid to the United States of America," apparently referring to 25% of NVIDIA’s revenue from these sales going to the US government.
NVIDIA - the world’s most valuable company and a leading chip manufacturer - has enjoyed enormous success amid surging global demand for AI technologies in recent years. That success has also placed the company at the centre of geopolitical tensions over the race for AI dominance.
News of Trump’s decision to lift restrictions came after he met last week with NVIDIA CEO Jensen Huang. The US president has repeatedly said that the United States must win the global competition in artificial intelligence, despite China’s substantial investments in its own national sector.
A NVIDIA spokesperson welcomed the decision in a comment to CNN, saying that allowing US chipmakers to compete supports high-paying American jobs and domestic manufacturing, and that supplying H200 chips to vetted commercial clients approved by the Commerce Department provides a balanced approach beneficial to the United States.
'Thaw' in US–China relations
Earlier in December, the Trump administration paused its plan to sanction China’s Ministry of State Security over espionage concerns, as the move risked disrupting a fragile trade truce.
China has also taken steps toward easing tensions. In early November, it became known that Beijing had suspended its planned export ban on gallium, germanium, antimony, ultra-hard materials, and other rare-earth metals destined for the United States, restrictions that were originally set to take effect in December 2024.
