US Adjusts Rules on Advanced Technology Exports
US President Donald Trump now allows Nvidia to sell its H200 AI chips to “approved customers” in China. He says the move protects national security, supports American jobs, and maintains the US lead in artificial intelligence. The policy also covers other US chipmakers like AMD and follows lobbying efforts by Nvidia CEO Jensen Huang, who visited Washington last week.
Nvidia Faces Pressure Amid US–China Rivalry
Nvidia, the world’s most valuable chipmaker, remains caught between Washington and Beijing. The firm previously faced a ban on selling its most advanced chips to China. Trump lifted the ban in July but required Nvidia to pay 15% of its China revenue to the US government. Beijing then reportedly instructed local tech firms to stop buying Nvidia chips designed for the Chinese market.
Industry Welcomes the Policy Change
Nvidia praises the decision, saying it strengthens competition and protects high-paying US jobs. The company shared this message with a major British news outlet. The H200 is one generation behind Nvidia’s Blackwell chip, widely regarded as the world’s most advanced AI semiconductor. Jensen Huang said in September, during an interview with a prominent British broadcaster, that global users, including those in China, should access this technology. He also warns that China’s growing chip ecosystem is quickly catching up to the US. Nvidia calls the vetted-customer plan a balanced solution that benefits America. The company’s shares rose slightly after the announcement.
Security and Supply Chain Challenges
Trump writes on social media that “25% will be paid to the United States of America.” Reporters have asked the White House for clarification, and Congress may oppose the plan. Analysts say limited H200 sales give the US time to negotiate rare earth agreements with China and prevent global supply chain disruptions. China dominates rare earth processing, essential for electronics production. Experts note that access to H200 chips will strengthen China’s tech sector but will not stop Beijing from reducing its reliance on US suppliers.
Concerns Over Military Applications
Observers note that Beijing previously encouraged local firms to reject Nvidia’s older H20 chips and adopt domestic alternatives. Researchers at Georgetown University’s Center for Security and Emerging Technology warn that China’s military already uses advanced US-designed chips to develop AI-enabled systems. Analyst Cole McFaul says easier access to high-end chips helps China deploy AI systems for military purposes and gain battlefield advantages.
