Trump Approves Nvidia H200 AI Chip Exports to China, Reversing Biden-Era Restrictions

President Donald Trump announced Monday that he has reached an agreement with Chinese President Xi Jinping to permit US technology giant Nvidia to export advanced artificial intelligence chips to China.

This decision represents a significant reversal of the strict export restrictions implemented by the Biden administration, which had limited the sale of advanced AI chips to China due to national security concerns regarding potential military applications.

In his announcement on Truth Social, Trump stated he had informed President Xi that the United States would allow Nvidia to ship H200 products to "approved customers in China, and other countries, under conditions that allow for continued strong National Security."

According to Trump, President Xi responded positively to the proposal, with an arrangement that "25% will be paid to the United States of America," though specific details about this payment mechanism were not provided.

Trump criticized the previous administration's approach, claiming it had forced American companies to invest billions in developing "degraded" products specifically for the Chinese market—products with reduced capabilities to comply with export regulations—which he described as "a terrible idea that slowed Innovation, and hurt the American Worker."

The President emphasized that his decision aims to "support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers."

Trump clarified that Nvidia's most cutting-edge technologies—the Blackwell series and upcoming Rubin processors—are excluded from the agreement and will remain available exclusively to US customers.

Under the Biden administration's restrictions, H200 and similar advanced chips were prohibited from export to China. The H200 chips are approximately 18 months behind Nvidia's latest technology offerings.

These graphic processing units (GPUs) are essential for training AI models that form the foundation of the generative AI revolution that began with ChatGPT's release in 2022.

The Commerce Department is currently finalizing implementation details, with Trump indicating that "the same approach will apply to AMD, Intel, and other GREAT American Companies."

This announcement comes amid ongoing trade tensions between Washington and Beijing as both nations compete for leadership in artificial intelligence technology.

Nvidia CEO Jensen Huang had extensively lobbied the White House to reverse the Biden-era policy, despite significant opposition in Washington to providing Chinese companies with access to powerful semiconductor technology.

Democratic Senator Elizabeth Warren criticized the deal, attributing it to a "backroom meeting" between Trump and Huang, suggesting a connection to Nvidia's donation for building the East Wing ballroom at the White House. She warned that this decision would "turbocharge China's military and undercut American technological leadership."

Alex Stapp of the Washington-based Institute for Progress described the policy change as a "massive own goal," noting that the H200 is "6x more powerful than the H20, which was previously the most powerful chip approved for export."