US Reviews Allowing Nvidia H200 AI Chip Sales to China Amid Security Debate

The United States has started a formal review process that could allow Nvidia to ship its advanced H200 artificial intelligence chips to China, marking a major shift in US technology policy. According to multiple sources, the review has been initiated by the Trump administration, fulfilling President Donald Trump’s recent statement that such sales would be permitted under strict conditions.

The proposal includes a 25 percent government fee on each sale, with the administration arguing that controlled exports could help US companies stay ahead of Chinese chipmakers by reducing demand for domestic Chinese alternatives. The US Commerce Department, which manages export controls, has forwarded license applications to the State, Energy, and Defense Departments for evaluation.

These agencies have up to 30 days to share their views, though the final decision rests with the president. Officials have stressed that the review will be detailed and serious, not a routine approval process. The move has sparked strong opposition from lawmakers and national security experts who fear that advanced AI chips could strengthen China’s military capabilities and weaken America’s technological edge.

This approach contrasts sharply with policies under the Biden administration, which imposed wide-ranging bans on advanced AI chip exports to China over security concerns. It also represents a notable change from Trump’s earlier stance, when he pushed to restrict China’s access to US technology. Critics argue that the H200 chips are critical to AI development and that exporting them could be a strategic error.

Supporters within the administration counter that allowing limited sales could slow the progress of Chinese rivals such as Huawei by keeping them dependent on US technology. Nvidia is reportedly considering increasing H200 production after strong interest from Chinese buyers, even though the chip is less powerful than its latest Blackwell series. The decision now under review could significantly shape the future of global AI competition and US-China tech relations.

Source: The Economic Times