US Updates Rules on Advanced AI Exports
US President Donald Trump now permits Nvidia to sell its H200 AI chips to “approved customers” in China. He says the move protects national security, supports American jobs, and keeps the US ahead in artificial intelligence. The policy also applies to other US chipmakers like AMD and follows lobbying from Nvidia CEO Jensen Huang, who recently visited Washington.
Nvidia Navigates US–China Geopolitical Pressure
Nvidia, the world’s leading chipmaker and most valuable company, sits at the center of rising tensions 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 companies to stop buying Nvidia chips designed for the Chinese market.
Industry Welcomes the Decision
Nvidia praises the move, saying it strengthens competition and protects high-paying US jobs. The company shared this statement 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 in China, should access this technology. He also warns that China’s growing chip ecosystem is rapidly closing the gap with the US. Nvidia calls the vetted-customer plan a balanced approach that benefits America. Shares of the company rose slightly after the announcement.
Security Concerns and Supply Chain Implications
Trump writes on social media that “25% will be paid to the United States of America.” Journalists have sought clarification from the White House, and the plan may face opposition from national security hawks in Congress. Analysts say controlled 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 strengthens China’s tech sector but will not stop Beijing from reducing dependence on US suppliers.
Experts Warn of Military Risks
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 use and gain battlefield advantages.
