On Monday, December 8th, President Trump announced that chipmaker NVIDIA would be allowed to export its H200 artificial intelligence (AI) chips to China and other approved customers, excluding higher-end chips like Blackwell and the upcoming Rubin series.
The U.S. government will receive a 25% sales commission from NVIDIA for the export of H200 chips. While the H200 chips approved for export to China are of a higher tier compared to the previously approved H20 chips, they are not NVIDIA’s top-of-the-line products.
President Trump took to the social media platform Truth Social to post about this policy, stating that it would “support American employment, strengthen U.S. manufacturing, and benefit American taxpayers,” which has received positive responses from the Chinese side.
He added in his post, “The Department of Commerce is finalizing the details, and the same policy will also apply to AMD, Intel, and other excellent American companies.”
In early trading on Monday, NVIDIA’s stock price rose briefly upon news of the Department of Commerce’s impending approval for chip exports to China, but the gains tapered off later. The stock rose about 2% in after-hours trading.
A spokesperson for NVIDIA commented in a statement, “We appreciate President Trump’s decision to allow the participation of the U.S. semiconductor industry in competition to support high-wage employment and the development of U.S. manufacturing.”
The spokesperson added, “Providing the H200 chips to commercial customers approved by the Department of Commerce is a well-considered balance that greatly benefits the United States.”
Chips are vital components in nearly all electronic product categories and form a core part of the U.S.-China AI competition. Additionally, chips play a significant role in the geopolitical relations between the U.S. and China.
The President also stated on Monday, “We will protect national security, create American job opportunities, and maintain America’s leading position in the field of AI.”
“NVIDIA’s American customers are already using its outstanding, highly advanced Blackwell chips, with the Rubin chips set to be introduced soon, neither of which are included in this (to China) transaction,” Trump wrote, “My administration will always put America first.”
When Beijing imposed export controls on rare earth minerals used in the production of certain high-end chips, the Trump administration threatened to significantly increase tariffs on goods imported from China into the U.S. Furthermore, the Chinese government continuously requested the Trump administration to relax export restrictions on Chinese chips, especially high-end ones.
According to White House sources, a preliminary trade truce agreement was reached between the U.S. and China after the summit between the leaders at the end of October in South Korea, with Beijing pledging to cease “retaliation” against American chip manufacturers.
President Trump stated after the meeting that he had discussed the export of NVIDIA chips with the Chinese side.
Chris McGuire, a former senior advisor at the U.S. State Department responsible for technology and security, expressed skepticism towards this new policy.
He warned in a post on X, “If AI chips sold by the U.S. to China lag behind the leading edge by 18 months, it will offset America’s biggest advantage in AI over China.”
McGuire believes that the U.S.’s lead over China in the field of AI chips is rapidly expanding, and hence a fixed 18-month lag will be more beneficial for China rather than the U.S. in the coming months or even years.