U.S. Clears Nvidia H200 Chip Exports to China Amid Rising Political Tensions
The U.S. Department of Commerce has officially approved Nvidia’s request to export its powerful H200 artificial intelligence chips to China, marking a significant shift in Washington’s tech-trade posture. The decision, first reported by Semafor, allows shipments to “approved” Chinese customers, with the U.S. government taking a 25% revenue cut from each sale. The move suggests the Trump administration is attempting to balance economic interests with national-security concerns at a time when AI hardware remains a sensitive geopolitical issue.
The H200 chips are far more advanced than the H20 processors Nvidia designed specifically for the Chinese market, but the approval comes with limits. Nvidia can only ship H200 units that are at least 18 months old — a restriction meant to curb the transfer of cutting-edge technology. Even so, Nvidia welcomed the decision. “We applaud President Trump’s decision to allow America’s chip industry to compete,” a company spokesperson told TechCrunch, calling the policy a “thoughtful balance” that supports U.S. jobs and manufacturing.
The approval arrives just a week after U.S. Commerce Secretary Howard Lutnick said the final choice rested with President Donald Trump. But the announcement contradicts growing bipartisan concerns in Congress. Senators Pete Ricketts and Chris Coons recently introduced the SAFE Chips Act, a bill that would block exports of advanced AI chips to China for 30 months. Lawmakers argue the technology could be used in ways that threaten U.S. national security, and it’s unclear whether the bill will move forward now that the administration has taken a different path.
The back-and-forth reflects months of shifting U.S. policy. Earlier this year, the Trump administration tightened licensing rules for chip exports to China before reversing a Biden-era restriction in May. By summer, officials signaled that exports could resume if the government received a 15% revenue share, turning AI chips into bargaining tools in broader trade negotiations with Beijing. But during that period, China’s own market shifted: the Cyberspace Administration of China banned domestic firms from buying Nvidia chips, pushing them toward alternatives from Alibaba and Huawei.
Despite the tension, President Trump said this week that Chinese President Xi Jinping “responded positively” to the H200 export approval. Whether that optimism holds remains to be seen, especially as Congress weighs new legislation and both nations continue to position themselves in the global race for AI leadership. The announcement underscores how AI hardware has become both a diplomatic lever and a commercial battleground.
source: techcrunch