On Monday, President Donald Trump announced that the United States will permit Nvidia to ship its H200 AI chips to approved customers in China, effectively lifting a de facto ban on U.S. AI chip sales to the country.
Trump’s Announcement
President Trump said he has informed President Xi Jinping that “the United States will allow NVIDIA to ship its H200 products to approved customers in China.” He added that the latest “Blackwell” chip would not be part of this deal. The president also stated that Intel, AMD, and other American companies would be allowed to sell similar chips to Chinese customers, with the Department of Commerce finalizing the details.
Impact on Nvidia
Nvidia’s H200 is a generation behind its most advanced “Blackwell” chip, which is considered among the most powerful AI chips available. The company has more than $500 billion worth of orders for its best AI chips to fulfill this year and next, before factoring in any buyers in China. Trump noted that the U.S. government would take a 25 % cut of sales of the approved chips, up from a previously announced 15 %.
China’s Response
In his social media post, Trump said: “President Xi responded positively!” The Chinese government had previously indicated it did not want an older generation Nvidia chip, the H20, to be sold in China. It remains to be seen whether China will allow imports of the H200 chips.
Nvidia’s Statement
Nvidia told NBC News in a statement: “We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America,” and “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”
Broader Context
For months, Nvidia CEO Jensen Huang has advocated for the government to permit Nvidia to sell some chips to customers in China. He said on Yahoo Finance in August: “Just as the American dollar is the world standard that economies are built on, we want the American tech stack for the world’s technology and industries to be built on, and that includes China.” AMD did not immediately respond to a request for comment, and Intel declined to comment.
Relations between Washington and Beijing have been thawing, with China accelerating purchases of American soybeans and approving exports of many rare earth minerals to U.S. buyers. Speaking at a White House event with farmers earlier on Monday, Trump said he believed China might buy even more soybeans than it had originally agreed to.
Market Reaction
Within minutes after the president’s post, Nvidia shares rose nearly 3 % in after‑hours trading.
Key Takeaways
- The U.S. will allow Nvidia’s H200 chips to ship to China, ending a de facto ban.
- The deal excludes Nvidia’s newer “Blackwell” chip and involves a 25 % U.S. tax on sales.
- China has responded positively, but it is unclear if imports will be permitted.
The announcement marks a significant shift in U.S. export controls and could unlock billions of dollars in revenue for Nvidia and other American chip makers.
