Trump gives green light to Nvidia to ship powerful AI chips to China despite national security fears
President Trump made the announcement on Truth Social that the U.S. government will allow Nvidia to export its H200 artificial‑intelligence chips to China, and that a fee will be collected for every chip shipped.
After Trump’s post, Nvidia’s stock rallied in after‑hours trading, up 1.2 %. The share price had already closed 3.16 % higher earlier in the day after Semafor first hinted that the approval might go through.
In a statement he said he’d briefed President Xi Jinping about the move and that Xi had responded positively.
“The United States will receive 25 % of the proceeds,” Trump added. He also said the Commerce Department is finalizing the details and that the same arrangement would apply to other AI‑chip makers such as AMD and Intel.
Trump wrote on Truth Social that the decision “protects national security, creates American jobs, and keeps America’s lead in AI.” He noted that Nvidia’s U.S. customers are already moving forward with Blackwell chips, which are not part of this deal.
Allowing the shipments could signal a friendlier tone toward China after Trump and Xi brokered a truce in the two countries’ trade and technology war in Busan, South Korea, last October.
Officials say the move strikes a middle ground between shipping Nvidia’s newest Blackwell chips to China—a step Trump has rejected—and banning U.S. chips for China altogether, which could give Huawei a larger market share. Nvidia and the Commerce Department have yet to respond to further inquiries.
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### Concerns About Military Use
Some U.S. officials worry that more advanced AI chips could accelerate China’s military modernization, a concern that originally led the Biden administration to limit such exports.
The Trump administration had been considering lifting the ban on the H200, according to Reuters. Senator Elizabeth Warren sharply criticized the move, arguing that the H200 could give China a significant strategic advantage.
The H200, unveiled two years ago, outperforms its predecessor, the H100, by offering greater high‑bandwidth memory and faster data processing. A report from the Institute for Progress estimates that the H200 would be nearly six times more powerful than the H20, the most advanced U.S. chip currently eligible for export to China after a brief ban was lifted.
If exported, Chinese AI labs could assemble supercomputers that rival U.S. performance, albeit at higher cost. President Trump has threatened new restrictions on tech exports to China, but most of those limits have since been rolled back.
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