Trump Greenlights Nvidia’s H200 Chip Sales To China, Imposes 25% Revenue Levy

Trump Greenlights Nvidia’s H200 Chip Sales To China, Imposes 25% Revenue Levy

US President Donald Trump has announced a significant shift in American export policy by allowing Nvidia to sell its H200 artificial intelligence chips to approved customers in China. The decision, announced through a post on his Truth Social account, marks a reversal of earlier restrictions while keeping tighter controls on the company's most advanced technologies.

Trump said he had informed Chinese President Xi Jinping that the United States would permit Nvidia to ship its H200 products to selected buyers in China and other countries, provided the arrangement maintained “strong national security." According to Trump, China responded positively to the proposal.

A new requirement under the policy mandates that 25% of Nvidia's revenue from these sales be paid directly to the US government. Trump described this as a measure that would support American jobs, strengthen domestic manufacturing, and ensure that taxpayers benefit from the arrangement.

He criticised the previous administration for forcing American companies to design “degraded" chips for export, products he said “nobody wanted", arguing that the policy slowed innovation and harmed the American worker. Declaring that “the era is over," he positioned the new approach as one that protects security while helping firms compete globally.

While the H200 will be permitted for export, Trump made clear that Nvidia's latest Blackwell and upcoming Rubin chips remain fully restricted. He emphasised that US customers are already moving ahead with these higher-end models, which he said are not part of the new deal with China.

The President also stated that the Department of Commerce is finalising the finer details of the policy and that similar terms will be extended to other American technology firms, including AMD and Intel.

The announcement follows sustained lobbying by Nvidia CEO Jensen Huang, who met Trump and several lawmakers in early December. Huang reportedly argued that inconsistent regulations were slowing down progress in artificial intelligence and weakening America's competitive edge.

However, the move has attracted criticism from both Republican and Democratic senators, including Pete Ricketts and Chris Coons, who have warned that easing chip exports to China could pose national security risks. Trump dismissed these concerns, insisting the policy maintains strict oversight.

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Despite the debate, Trump praised Huang as a “smart man" after their recent meeting and remains confident that his decision will keep America ahead in the global AI race.

As discussions continue, the administration insists the policy places America's interests first while balancing economic and strategic priorities in a rapidly evolving technological landscape.

Source: News18
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