US Approves Nvidia H200 Chip Exports to China Amid Revised Tech Policy

The United States government has announced a significant policy shift, granting Nvidia permission to export its advanced H200 artificial intelligence chips to China. This development follows discussions between US President Donald Trump and Chinese President Xi Jinping, reflecting a change in previous US restrictions aimed at curbing China's access to high-performance chips over national security concerns.

Background on Policy Change

Under the prior administration, the US imposed strict limitations on the export of high-end semiconductor technology to China, citing potential military applications and the risk of advanced AI technologies being used in defense and cybersecurity sectors. These restrictions had significant implications for American technology companies, particularly Nvidia, which has become the nation's most valuable company due to the rapid growth of artificial intelligence applications.

Details of the Export Agreement

According to the latest announcement, Nvidia will be allowed to sell its H200 chips to selected Chinese customers who obtain approval through a review process managed by the US Department of Commerce. The chips will first be imported to the United States from Taiwan, where they are manufactured, for a security assessment before being exported to China. A 25% import tariff will be applied during this process, intended to benefit US taxpayers and support domestic industry.

Nvidia has expressed support for the decision, stating that offering the H200 to vetted, approved customers strikes a balance between maintaining national security and supporting American innovation. The company's executive leadership has previously advocated for easing chip export restrictions, emphasizing the importance of global market access for US technology firms.

Scope and Limitations of the Deal

The revised policy specifically permits the export of the H200 chip model, while excluding Nvidia's more advanced Blackwell and Rubin chip series, which are reserved exclusively for US and select international partners. The Department of Commerce is currently finalizing the details, and the same policy framework is expected to be extended to other major US semiconductor manufacturers, including AMD and Intel.

Political and Industry Reactions

The policy change has sparked debate among US lawmakers. Several members of the US Senate have voiced concerns, describing the move as a potential risk to economic and national security. They argue that providing China access to these advanced chips could enhance the capabilities of Chinese military technology, strengthen its cyber operations, and bolster its manufacturing sector, potentially undermining US competitiveness.

Industry analysts note that the H200 chip is significantly more powerful than previous models approved for export, raising questions about the long-term strategic impact. Some observers have also highlighted recent comments from Chinese AI firms, which have identified restricted access to US-designed chips as a key obstacle in their efforts to compete globally in the artificial intelligence sector.

Transparency and Scrutiny

The announcement arrives amidst increased scrutiny over potential undisclosed arrangements between technology firms and the government. Recent inquiries have been raised regarding donations from major corporations to White House projects, though there has been no official confirmation of any impropriety linked to the Nvidia export agreement.

Uncertainties in Chinese Adoption

Despite the US approval, it remains uncertain whether Chinese authorities will permit domestic companies to utilize the imported Nvidia chips. China has previously restricted the use of US technology in sensitive sectors, citing concerns over security vulnerabilities and a strategic preference for developing domestic alternatives. Experts suggest that Chinese firms may desire the advanced chips, but government policy could continue to prioritize self-reliance and technological independence.

As the details of the export arrangement are finalized, the decision marks a notable development in the ongoing technology relationship between the US and China, with potential implications for the global semiconductor industry and the balance of technological power.