US Approves Nvidia H200 AI Chip Exports to China with 25% Fee Amid Security Debate
The United States has approved the export of Nvidia’s H200 AI chips to China, while imposing a 25% fee on the sales, in a move aimed at balancing economic interests with national security concerns. President Donald Trump announced the decision on Monday, marking a significant moment in the ongoing debate over US semiconductor exports to China.
This decision comes after months of deliberation in Washington over whether restricting chip sales could slow China’s technological growth or whether selling them could maintain America’s competitive edge. The export fee will be collected when the chips enter the US from Taiwan for security screening before re-export to China, a process confirmed by the White House.
Nvidia’s shares responded positively to the news, rising 2% in after-hours trading, following an earlier 3% gain during the day. Trump also reported informing Chinese President Xi Jinping of the approval, receiving what he described as a “positive” response. The deal is expected to extend to other US chipmakers, including AMD and Intel, although Nvidia’s latest Blackwell and upcoming Rubin chips remain excluded.
While Nvidia praised the move as a “thoughtful balance,” some Washington lawmakers raised alarms over potential military applications of the H200 chips. Democratic senators called it a “colossal national security failure,” while Republican Congressman John Moolenaar warned that China could copy and mass-produce the technology. Experts note that although the H200 is nearly six times more powerful than the previously exportable H20 chip, China has been actively reducing reliance on US semiconductors.
Despite these concerns, analysts suggest Chinese firms may still pursue H200s for their unmatched performance. Local competitors such as Huawei, Cambricon, and Moore Threads are unable to match Nvidia’s AI capabilities yet. The announcement coincides with the US Justice Department’s crackdown on a China-linked smuggling ring that exported restricted Nvidia chips illegally, underscoring the high stakes of global AI technology and the complex balance between commerce and security.
source: arise