Trump Administration Considers Allowing Nvidia H200 AI Chip Sales to China

Reviewed byNidhi Govil

5 Sources

Share

The Trump administration is reviewing policies that could allow Nvidia to sell its advanced H200 AI chips to China, marking a potential shift in U.S.-China tech relations following recent diplomatic détente between the two nations.

Policy Review Signals Potential Shift in U.S.-China Tech Relations

The Trump administration is actively considering a significant policy change that would allow Nvidia Corporation to sell its advanced H200 artificial intelligence chips to China, according to multiple sources familiar with the matter

1

. The Commerce Department, which oversees U.S. export controls, is currently reviewing its existing policy that bars such sales to China, though officials stress that plans could still change

2

.

Source: The Korea Times

Source: The Korea Times

Diplomatic Context and Trade Détente

This potential policy shift comes in the wake of improved U.S.-China relations following a trade and technology truce brokered by President Donald Trump and Chinese leader Xi Jinping during talks in Busan last month

3

. The bilateral détente has created new prospects for exports of advanced U.S. technology to China, marking a notable departure from the escalating restrictions that characterized previous years

4

.

Technical Specifications and Market Impact

The H200 chip, unveiled two years ago, represents a significant technological advancement over its predecessors. It features substantially more high-bandwidth memory than the H100, enabling faster data processing capabilities

5

. Industry estimates suggest the H200 is approximately twice as powerful as Nvidia's H20 chip, which currently represents the most advanced AI semiconductor that can legally be exported to China following the Trump administration's reversal of its short-lived ban on such sales earlier this year

2

.

Source: BNN

Source: BNN

National Security Concerns and Opposition

Despite the potential for improved trade relations, the proposal faces significant opposition from China hawks in Washington who express concerns about the national security implications of such sales. These critics worry that providing Beijing with access to more advanced AI chips could help China enhance its military capabilities, the same fears that originally prompted the Biden administration to impose strict limits on such exports

1

.

Nvidia's Position and Market Challenges

Nvidia has not directly addressed the ongoing review but has acknowledged the competitive disadvantage created by current regulations. The company noted that existing rules prevent it from offering a competitive AI data center chip in China, effectively ceding one of its largest potential markets to rapidly growing foreign competitors

2

. This regulatory environment has forced Nvidia to watch as competitors gain market share in the massive Chinese AI market.

High-Level Diplomatic Engagement

The timing of this review coincides with continued high-level engagement between Nvidia leadership and the Trump administration. Earlier this week, Nvidia CEO Jensen Huang, whom Trump has publicly praised as a "great guy," attended a White House event during Saudi Crown Prince Mohammed bin Salman's visit

5

. This close relationship between Nvidia's leadership and the White House may influence the final decision on the H200 chip sales.

Source: Economic Times

Source: Economic Times

Today's Top Stories

TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

© 2025 Triveous Technologies Private Limited
Instagram logo
LinkedIn logo