Trump Approves Nvidia H200 Chip Sales to Approved Chinese Customers with Commerce Department Vetting
Former President Donald Trump has approved the sale of Nvidia's H200 chips to approved customers in China, with oversight from the Department of Commerce. This policy could potentially extend to other US chipmakers, including AMD, following lobbying efforts by Nvidia CEO Jensen Huang.
Previously, Nvidia had been banned from selling its most advanced chips to Beijing. Trump reversed this ban in July, linking the sales to a condition that the US government receive a 15% share of Chinese revenues; Trump later publicly claimed a 25% share.
Despite the policy change, Beijing reportedly ordered Chinese firms to stop purchasing Nvidia chips manufactured for the Chinese market. Nvidia has welcomed the decision, describing it as a balanced approach that supports American jobs and AI leadership, resulting in a slight rise in the company's share price.
Nvidia’s H200 chip is a generation behind its Blackwell chip, which is among the most advanced AI semiconductors. China continues to aim for reduced dependence on US chips by developing its own chip ecosystem.
Analysts believe this move buys time for ongoing US-China talks concerning rare earth elements and supply chains, especially considering China's near-monopoly on rare earth processing. However, some warn that easier access to high-quality chips could allow China to deploy AI-enabled military capabilities, noting that the People's Liberation Army (PLA) already uses US-designed chips for such purposes.
The new policy is expected to face opposition from national security hawks in Congress. The BBC has sought clarification from the White House regarding this policy.
