Trump Lifts Nvidia H200 China Export Ban Marking Major Shift in US–China AI Trade Tensions

Picture Credit: Digital Watch Observatory

US President Donald Trump has announced a major reversal in American technology trade policy, allowing Nvidia to resume sales of its powerful H200 artificial intelligence chips to approved customers in China. The move signals a notable softening in one aspect of the escalating economic rivalry between the world’s two largest economies, while still keeping America’s most advanced chips including Nvidia’s Blackwell and upcoming Rubin series firmly restricted.

The H200 is Nvidia’s second-most powerful AI processor and is critical for handling complex machine learning and data processing tasks. By reopening access to this chip, the US is giving Chinese firms limited access to high-performance AI hardware while attempting to retain strategic control over the most advanced technologies. Trump said he had personally informed Xi Jinping of the decision, adding that the Chinese leader responded positively to the revised policy.

The announcement also carries a financial twist. Trump indicated that the US government would receive 25% of the revenue from Nvidia’s H200 chip sales to China, a condition that appears designed to turn national security policy into a source of direct economic benefit for the United States. The change follows a recent meeting between Trump and Nvidia CEO Jensen Huang, highlighting the growing role of corporate diplomacy in shaping global tech policy.

Industry response has been largely supportive. Nvidia welcomed the decision, calling it a “balanced” approach that protects US security interests while allowing American companies to compete globally. AMD also praised the move, noting that it strengthens US competitiveness and supports high-value domestic jobs. Trump added that similar export frameworks are being finalized for Intel and other American chip manufacturers.

The decision builds on earlier agreements struck this year, including revenue-sharing arrangements with major chipmakers and the US government’s acquisition of a 10% stake in Intel. While the move slightly eases pressure on China’s access to AI hardware, it reinforces a broader strategy, giving US firms room to profit, while keeping tight control over the cutting edge of artificial intelligence technology.