US Updates Approach to Advanced Tech Exports
US President Donald Trump now allows Nvidia to sell its H200 AI chips to “approved customers” in China. He says the step protects national security, supports American jobs and maintains the US lead in artificial intelligence. The decision also covers other US chipmakers like AMD and follows strong lobbying from Nvidia chief Jensen Huang, who visited Washington last week.
Nvidia Under Pressure in the US–China Rivalry
Nvidia, the world’s most valuable company and a dominant chip producer, remains caught between Washington and Beijing. The firm once faced a ban on selling its most advanced chips to China. Trump removed the ban in July but required Nvidia to pay 15% of its China revenue to the US government. Beijing then reportedly urged local tech firms to stop buying Nvidia chips designed for the Chinese market.
Industry Reaction to the New Policy
Nvidia praises the shift and says it strengthens competition and supports high-paying US jobs. The company shared this view in a statement to a major British news outlet. The H200 is one generation behind Nvidia’s Blackwell chip, which many experts call the world’s most advanced AI semiconductor. Jensen Huang said in September during an interview with a well-known British broadcaster that global users, including those in China, should access this technology. He also warns that China’s developing chip ecosystem places it close behind the US. Nvidia applauds Trump’s approach again and calls the vetted-customer model a balanced solution that benefits the US. The company’s shares rose slightly after the announcement.
Security Debates and Resource Concerns
Trump states on social media that “25% will be paid to the United States of America.” Reporters have asked the White House for details, and the plan may face resistance from national security hawks in Congress. Analysts say that controlled H200 sales give the US time to negotiate rare earth arrangements with China and help prevent supply chain disruptions. China dominates rare earth processing, which remains essential for global electronics. Experts say access to H200 chips will support China’s tech sector but will not stop Beijing from reducing its reliance on US suppliers.
Experts Warn of Military Risks
Observers note that Beijing previously encouraged local firms to reject Nvidia’s older H20 chips and switch to domestic semiconductors. Researchers at Georgetown University’s Center for Security and Emerging Technology say China’s military already uses advanced US-designed chips to develop AI-enabled systems. Analyst Cole McFaul warns that easier access to high-quality chips helps China deploy AI systems for military purposes. He argues that Beijing wants to use advanced chips for battlefield advantage.
