President Trump moved to allow Nvidia to sell its H200 artificial-intelligence chips to China, a sharp reversal from earlier U.S. curbs on advanced semiconductor exports. The White House framed the decision as protecting national security while supporting American jobs and manufacturing, with a provision to route 25% of Nvidia’s China sales to the U.S. government. Critics in both parties warned the move could bolster Beijing’s military and industrial AI ambitions, noting the chips—though not Nvidia’s most advanced—remain far ahead of China’s domestic capabilities. The Justice Department on the same day said it dismantled a smuggling network tied to these components, underscoring the stakes. Commerce must still finalize rules, and lawmakers are weighing legislation to reassert export-control authority. The policy highlights Washington’s tension between safeguarding strategic technologies and sustaining U.S. chipmakers as the global AI race accelerates and supply chains centered in Taiwan and South Korea continue to dominate production.
U.S. to permit Nvidia’s H200 AI chip sales to China, balancing security risks with economic aims
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