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The U.S. is shifting its export policy regarding advanced artificial intelligence (AI) chips, a move that could significantly impact the tech landscape and geopolitical tensions. Former President Donald Trump announced he has authorized the sale of Nvidia’s H200 chips to “customers in China and elsewhere,” reversing a strict export ban implemented by the Biden administration due to national security concerns.
The decision has drawn swift criticism from Democratic lawmakers, who argue it will bolster China’s military and economic capabilities. This policy change underscores the complex balancing act between economic interests and national security priorities in the high-stakes world of advanced technology.
In a post on his Truth Social platform, Trump stated he had informed Chinese President Xi Jinping of the decision, adding that Washington would allow Nvidia to supply its H200 products to “approved customers in China and other countries, subject to conditions ensuring continued strong national security.”
“President Xi was very receptive! 25 percent will be paid to the United States,” Trump wrote, without elaborating on the specifics of the payment mechanism.
Trump criticized his predecessor’s policy, claiming that President Biden “forced our great companies to spend billions of dollars making ‘impaired’ products that nobody wanted – a very bad idea that slowed down innovation and hurt American workers.”
He was referring to the Biden administration’s requirement that chipmakers develop modified, less powerful versions specifically for the Chinese market. These chips had reduced capabilities, such as lower processing speeds, to comply with export control regulations.
Chinese Foreign Ministry spokesperson Guo Jiakun, when asked about the agreement, did not directly confirm it. “China always advocates mutual benefit and win-win results in cooperation between China and the United States,” he stated.
Blackwell Chips Remain Restricted
Under the Biden administration’s restrictions, exports of H200 and similar advanced chips to China were prohibited. Nvidia confirmed the change, stating, “We welcome President Trump’s decision to allow the American chip industry to compete, fostering job creation and manufacturing in America.”
“The H200 supply to approved commercial customers, vetted by the Department of Commerce, strikes a sensible balance that is great for America,” the company added.
Trump emphasized that the agreement does not include Nvidia’s most advanced chips – the Blackwell series and future Rubin processors, which will remain available only to U.S. customers. The H200 technology is approximately 18 months behind the company’s newest products.
These chips – graphics processing units (GPUs) – are crucial for training AI models and have become foundational to the generative AI revolution that began with the release of ChatGPT in 2022. As AI competition intensifies, access to these technologies is a key strategic advantage.
With the Commerce Department finalizing the implementation details of the agreement, Trump added that “the same approach will be applied to AMD, Intel, and other great American companies.”
AI Race and Criticism of the Deal
The announcement comes amid a competitive push between Washington and Beijing for dominance in AI technology. Nvidia CEO Jensen Huang has actively lobbied the White House to reverse the Biden-era policies, despite significant opposition within Washington to granting Chinese firms access to powerful chips.
Massachusetts Senator Elizabeth Warren labeled the agreement a “backroom deal” between Trump and Nvidia, alleging that the former president secured funding for the White House East Room renovations. Warren and other Senate Democratic leaders issued a joint statement calling Trump’s decision “a colossal economic and national security mistake.”
“Providing access to these chips would give the Chinese military a game-changing technology, enabling them to make their weapons even more dangerous, conduct more effective cyberattacks against American businesses and critical infrastructure, and strengthen their economy and manufacturing sector,” the lawmakers stated.
Trump’s announcement coincided with the Justice Department’s announcement of the arrest of two Chinese businessmen accused of conspiring to illegally export Nvidia H100 and H200 chips from the U.S. to China. It remains unclear whether the agreement will impact this case.
Alex Stapp, a spokesperson for the Progressive Policy Institute, called the policy shift a “massive own goal,” noting that the H200 is “6x more powerful than the H20, which was previously the most powerful chip cleared for export.”
Zhang Yi, founder of Chinese technology research firm iiMedia, said that the availability of Nvidia’s GPUs is unlikely to alter China’s drive to develop its own advanced chip production. “On the contrary, it will now happen even faster,” he told AFP, as the 25% U.S. tariff will increase costs for Chinese companies already concerned about supply chain security.
