US Clears Nvidia H200 Chip Sales to China Under Strict Security Rules

The United States has approved the export of Nvidia’s H200 artificial intelligence chips to China, marking a major shift in its technology trade policy. Under the new rules announced by the Trump administration, shipments of Nvidia’s second most powerful AI chips will be allowed, but only after strict checks and safeguards.

Each batch of chips must be reviewed by an independent testing laboratory to verify their technical capabilities before they can be sent to China. In addition, China will not be allowed to receive more than half of the total H200 chips sold to U.S. customers.

Nvidia will also need to confirm that sufficient chip supplies remain available within the United States. At the same time, Chinese buyers must prove they have strong security systems in place and provide assurances that the chips will not be used for military or defence-related purposes.

President Donald Trump had earlier said the exports would be permitted in return for a 25% fee paid to the U.S. government, a move that has sparked debate in Washington.

Critics argue that advanced AI chips could strengthen China’s military and weaken the U.S. lead in artificial intelligence. However, the administration believes controlled exports will reduce China’s incentive to accelerate domestic alternatives, including those developed by sanctioned companies.

A government review on the issue was completed recently, clearing the way for initial shipments, although questions remain over long-term enforcement and China’s internal approvals.

Source: The Economic Times