US Revises Rules for Advanced Semiconductor Exports
US President Donald Trump now permits Nvidia to sell its H200 AI chips to “approved customers” in China. He says the move protects national security, supports American jobs, and preserves the US lead in artificial intelligence. The policy also applies to other US chipmakers like AMD and follows lobbying efforts by Nvidia CEO Jensen Huang, who visited Washington last week.
Nvidia Faces Pressure Between Washington and Beijing
Nvidia, the world’s most valuable chipmaker, remains at the centre of tensions between the US and China. The firm previously faced a ban on selling its most advanced chips to China. Trump lifted the ban in July but required Nvidia to pay 15% of its China revenue to the US government. Following this, Beijing reportedly instructed local tech firms to stop purchasing Nvidia chips made for the Chinese market.
Industry Welcomes Policy Shift
Nvidia praises the decision, stating it strengthens competition and supports high-paying US jobs. The company conveyed this view in a statement to a major British news outlet. The H200 sits one generation behind Nvidia’s Blackwell chip, which experts call the world’s most advanced AI semiconductor. Jensen Huang said in September, during an interview with a well-known British broadcaster, that people worldwide, including in China, should have access to this technology. He also warns that China’s growing chip ecosystem is quickly catching up to the US. Nvidia calls the plan for vetted customers a balanced solution that benefits America. The company’s shares rose slightly after the announcement.
Concerns Over Security and Supply Chains
Trump writes on social media that “25% will be paid to the United States of America.” Reporters have sought clarification from the White House, and the plan may face resistance from national security hawks in Congress. Analysts say limited H200 sales give the US time to negotiate rare earth agreements with China and prevent disruptions to global supply chains. China controls most rare earth processing, essential for electronics production. Experts add that access to H200 chips will strengthen China’s tech sector but will not stop Beijing from reducing dependence on US suppliers.
Warnings About Military Applications
Observers note that Beijing previously urged local firms to reject Nvidia’s older H20 chips and adopt domestic alternatives. Researchers at Georgetown University’s Center for Security and Emerging Technology warn that China’s military already uses advanced US-designed chips to develop AI-enabled systems. Analyst Cole McFaul says easier access to high-quality chips helps China deploy AI systems for military use and aims to gain battlefield advantages.
