Focus on the BIG picture.
Tuesday, Dec 09, 2025
Outside the box.
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
President Trump permits regulated H200 exports to China while maintaining a ban on Nvidia’s most advanced Blackwell chips, prompting market reaction and strategic debate.
President Donald Trump has confirmed that the United States will allow Nvidia to export its H200 artificial-intelligence processors to approved Chinese customers, marking a calibrated policy shift designed to protect national security while supporting U.S. industry.
The decision introduces a twenty-five percent export fee but continues to block Nvidia’s top-tier Blackwell chips, which remain restricted due to their strategic capabilities.
Trump said he informed Chinese President Xi Jinping of the change and received a positive response.
Nvidia and U.S. officials framed the move as a balance between economic competitiveness and security oversight, with all licences subject to Commerce Department review.
The H200, known for its expanded memory bandwidth and performance advantages over previous export-permitted models, could give Nvidia renewed access to China’s large AI market — a development that boosted the company’s stock.
However, Nvidia CEO Jensen Huang acknowledged uncertainty over Chinese purchasing appetite given Beijing’s push for domestic semiconductor alternatives.
While analysts see potential commercial gains, some U.S. lawmakers and security experts continue to warn that even controlled exports may accelerate China’s development of advanced AI systems.
For now, only vetted buyers will be eligible, and the United States maintains firm limits on the most sophisticated hardware as it attempts to balance technological leadership with geopolitical caution.
The decision introduces a twenty-five percent export fee but continues to block Nvidia’s top-tier Blackwell chips, which remain restricted due to their strategic capabilities.
Trump said he informed Chinese President Xi Jinping of the change and received a positive response.
Nvidia and U.S. officials framed the move as a balance between economic competitiveness and security oversight, with all licences subject to Commerce Department review.
The H200, known for its expanded memory bandwidth and performance advantages over previous export-permitted models, could give Nvidia renewed access to China’s large AI market — a development that boosted the company’s stock.
However, Nvidia CEO Jensen Huang acknowledged uncertainty over Chinese purchasing appetite given Beijing’s push for domestic semiconductor alternatives.
While analysts see potential commercial gains, some U.S. lawmakers and security experts continue to warn that even controlled exports may accelerate China’s development of advanced AI systems.
For now, only vetted buyers will be eligible, and the United States maintains firm limits on the most sophisticated hardware as it attempts to balance technological leadership with geopolitical caution.
