US allows Nvidia H200 Chip Exports to China Amid Security Debate
09th Dec. 2025
The United States has allowed Nvidia to export its H200 AI chips to China under a new framework. The new framework includes a 25% import fee and a mandatory security review. This framework will mark a major policy shift in the US’s long-running technology standoff with Beijing. The decision, announced by Donald Trump on Truth Social to balance national security concerns with the economic interests of U.S. semiconductor firms. Trump posted that he informed China’s President Xi Jinping about the decision and claimed that he “responded positively.”
He further stated, “This policy will support American Jobs, strengthen US manufacturing and benefit American Taxpayers.” Although the administration neither disclosed the volume of H200 Chips allowed for sale nor the conditions attached to it. However, Trump said the US Commerce Department is finalizing the arrangements that will “allow for continued strong National Security.” Meanwhile, Nvidia’s shares climbed 2% in after-hours trading following Trump’s announcement. It also extended a 3% rise earlier in the day after a Semafor report signaled the policy shift.
A Strategic Compromise between China and the US
A Source said, U.S. officials chose the middle path between two options. Either they block all AI chip exports, which they believe would increase China’s dependency on Huawei-made semiconductors, or permit sales of Nvidia’s most advanced Blackwell chips, which Trump has already declined.
Nvidia welcomed the approach and said, “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.” However, other chip companies like Intel and AMD did not comment. According to the White House, the 25% fee will be collected when chips arrive from Taiwan, where they are manufactured. Furthermore, before exporting the chips to China, U.S. authorities screen them for security risks.
Even after a smooth compromise, the move has triggered sharp criticism in the US. Several Democratic senators labeled the approval a “colossal economic and national security failure.” Talking to Reuters, Republican Representative John Moolenaar warned that China would “rip off” Nvidia’s designs and use them to enhance its military power.
Meanwhile, the Institute For Progress reported that the H200 is nearly six times more powerful than the H20. It is the most advanced chip that is currently legal for export to China. They also stated that the Blackwell chip, which is in use by the US. AI firms are about 1.5 times faster than H20 and H200 chips.
In the meantime, it’s unclear whether China will allow large-scale purchases, as it has increasingly urged domestic firms to reduce their reliance on U.S. chips. Earlier, China accused Nvidia’s H20 models of posing backdoor security risks, which Nvidia later denied.
Overall, China’s tech sector, including Huawei, Cambricon, and Moore Threads, continues expanding domestic AI chip development. Nevertheless, experts note that the H200 “is better than every chip the Chinese can make,” suggesting demand will persist despite political tensions.
Web Resources on the Nvidia H200 Chip Exports
1. Reuters.com: US to allow Nvidia H200 chip shipments to China, Trump says
2. Politico.com: US to allow powerful AI chip sales to China, Trump says
3. TruthSocial.com: Trump on Nvidia H200 Chip Sales
4. AcademicBlock.com: Nvidia Shares Rise After Strong Quarterly Beat