{"id":30818,"date":"2025-12-09T15:04:16","date_gmt":"2025-12-09T15:04:16","guid":{"rendered":"https:\/\/ipp-news.com\/?p=30818"},"modified":"2025-12-09T15:04:16","modified_gmt":"2025-12-09T15:04:16","slug":"us-to-allow-nvidia-h200-chip-shipments-to-china-trump-says","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=30818","title":{"rendered":"US to allow Nvidia H200 chip shipments to China, Trump says"},"content":{"rendered":"
The United States will allow exports of Nvidia\u2019s H200 processors\u2014its second-most advanced artificial intelligence chips\u2014to China and will collect a 25% fee on such sales, U.S. President Donald Trump said on Monday.<\/p>\n

The decision appears to conclude a U.S. debate over whether Nvidia and its rivals should preserve their global lead in AI chips by selling to China or withhold shipments to curb Beijing\u2019s technological rise. It remains unclear whether Trump\u2019s move will lead to new business, as Beijing has urged local firms to avoid US. technology.<\/p>\n

Nvidia shares rose 2% in after-hours trading after Trump announced the decision on his Truth Social account, following a 3% rise during the day on a Semafor report. Trump said he informed China\u2019s President Xi Jinping\u2014whose government has put Nvidia chips under scrutiny\u2014about the plan and that Xi \u201cresponded positively.\u201d<\/p>\n

He said the US\u00a0Commerce Department was finalising the arrangement, which would also apply to Advanced Micro Devices and Intel. Trump wrote that the fee to be paid to the US\u00a0government was \u201c$25%,\u201d and a White House official confirmed he meant 25%, higher than the 15% floated in August.<\/p>\n

\u201cWe will protect National Security, create American Jobs, and keep America\u2019s lead in AI,\u201d Trump said on Truth Social. \u201cNVIDIA\u2019s US\u00a0customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal.\u201d<\/p>\n

Trump did not specify how many H200 chips would be authorised or what conditions might apply, only that exports would proceed \u201cunder conditions that allow for continued strong National Security.\u201d<\/p>\n

Balanching security and market power\u00a0<\/p>\n

Officials view the move as a compromise between banning all U.S. AI chip sales to China\u2014an approach they fear could boost Huawei\u2019s domestic AI chip push\u2014and allowing exports of Nvidia\u2019s latest Blackwell processors, which Trump has refused to permit, according to a person familiar with the discussions.<\/p>\n

\u201cOffering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,\u201d Nvidia said in a statement. Intel declined comment, while the Commerce Department and AMD did not respond.<\/p>\n

A White House official said the 25% fee would be collected as an import tax when chips are shipped from Taiwan, where they are manufactured, to the United States. They will undergo a security review before being sent onward to China.<\/p>\n

Asked about the approval on Tuesday, China\u2019s foreign ministry said Beijing believes cooperation with the United States should produce \u201cmutual benefits.\u201d<\/p>\n

Fears of military strengthening\u00a0<\/p>\n

China hawks in Washington warn that advanced AI chips could accelerate Beijing\u2019s military capabilities, the reason the Biden administration first imposed export limits. The Trump administration had been weighing approval for the deal, sources told Reuters last month. Trump said last week he met Nvidia CEO Jensen Huang and discussed export controls.<\/p>\n

\u201cIt\u2019s a terrible mistake to trade off national security for advantages in trade,\u201d said Eric Hirschhorn, a former senior Commerce Department official under the Obama administration. \u201cIt cuts against the consistent policies of Democratic and Republican administrations alike not to assist China\u2019s military modernization.\u201d<\/p>\n

A report from the non-partisan Institute for Progress said the H200 is almost six times more powerful than the H20\u2014the most advanced AI chip currently legal for export to China after the Trump administration reversed a short-lived ban this year.<\/p>\n

By comparison, Nvidia\u2019s Blackwell processors used by U.S. companies are about 1.5 times faster than the H200 for AI training, and five times faster for inference tasks. Nvidia research indicates Blackwell could be up to 10 times faster for some workloads.<\/p>\n

Several Democratic senators called Trump\u2019s decision a \u201ccolossal economic and national security failure\u201d that would boost China\u2019s industry and military. Republican Representative John Moolenaar, chair of the House China Select Committee, said China would use the chips to build military power and replicate Nvidia\u2019s technology. \u201cChina will rip off its technology … and seek to end Nvidia as a competitor,\u201d he said.<\/p>\n

China’s market response\u00a0<\/p>\n

In recent months, Beijing pressured local tech firms to avoid Nvidia\u2019s downgraded China-market chips\u2014the H20, RTX 6000D and L20\u2014two sources said.<\/p>\n

George Chen, partner at The Asia Group, said regulators may soften their stance after Trump\u2019s comments about Xi\u2019s reaction, especially as Washington and Beijing attempt to stabilise relations. The H200 would be \u201cfar more useful\u201d to Chinese firms than the H20, he said.<\/p>\n

\u201cI expect state media to gradually change their narrative and be more welcoming to Nvidia,\u201d he added.<\/p>\n

Bo Zhengyuan of consultancy Plenum said Beijing would likely act cautiously but remain focused on self-reliance. \u201cWe don\u2019t know how long this window can last. China will remain ultra-focused on gaining advanced chip-making capability of its own,\u201d he said.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

The United States will allow exports of Nvidia\u2019s H200 processors\u2014its second-most advanced artificial intelligence chips\u2014to China and will collect a 25% fee on such sales, U.S. President Donald Trump said on Monday. The decision appears to conclude a U.S. debate over whether Nvidia and its rivals should preserve their global lead in AI chips by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-30818","post","type-post","status-publish","format-standard","hentry","category-english-news"],"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/30818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30818"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/30818\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}