The US government has approved Nvidia’s sale of advanced artificial intelligence chips to China. The Department of Commerce announced the decision on Tuesday. Officials said they reviewed domestic supply levels before acting. The move loosens previous export restrictions on sensitive technology.
Washington had limited the sales over national security concerns. Officials feared the chips could enhance China’s technology sector and military capabilities. The new policy relaxes those limits under strict conditions. Authorities described the change as controlled and measured.
H200 processors cleared for export
The approval applies to Nvidia’s H200 processors. The chip ranks as the company’s second-most-advanced AI product. Regulators had previously blocked the processor from Chinese buyers. The new rules allow shipments to resume.
The Commerce Department said exports depend on adequate supply in the US. Officials want to protect domestic access to the chips. Regulators said they will continue close monitoring. The policy also covers less advanced Nvidia processors.
Security rules remain in force
The Bureau of Industry and Security set strict requirements for Chinese customers. Buyers must demonstrate strong security measures. Authorities ban any military use of the chips. Officials promised ongoing enforcement throughout the supply chain.
Regulators said violations will trigger penalties. The rules aim to reduce national security risks. Officials framed the policy as a balance between trade and protection.
Trump supports controlled sales with a fee
President Donald Trump said last month he would allow sales to approved Chinese buyers. He said the US government would collect a 25 percent fee. Trump described the plan as a safeguard for American interests. He called it limited access rather than full permission.
Nvidia welcomed the decision through a company spokesperson. The firm said the move would support US jobs and manufacturing. Executives argued that broader export access strengthens American competitiveness.
China criticizes US restrictions
A Chinese embassy spokesperson said Beijing opposes politicized technology trade. He said restrictions disrupt industrial and supply chains. The spokesperson said the approach harms shared interests. Chinese officials have made similar statements repeatedly.
The comments highlighted ongoing tensions between the two countries. Both governments view artificial intelligence as strategically critical. The issue remains central to broader trade and security disputes.
Nvidia caught in US-China technology rivalry
Nvidia remains at the center of the US-China AI race. The company has faced shifting policies from both governments. Trump reversed earlier sales restrictions last July. He then demanded a share of Nvidia’s China revenue.
After that move, Beijing reportedly told tech firms to avoid Nvidia chips. Authorities encouraged companies to use domestic semiconductors instead. The strategy aimed to strengthen China’s chip industry. Experts say Chinese chips still lag behind US designs.
Blackwell chips remain off limits
The H200 chip is one generation behind Nvidia’s Blackwell processor. Analysts consider Blackwell the world’s most advanced AI semiconductor. US authorities continue to block its sale to China. Officials cited higher security risks.
The restriction shows the limits of the policy shift. Washington continues to guard its most powerful technology. The decision reflects a cautious, calculated strategy.
Lobbying and market impact
During 2025, Nvidia CEO Jensen Huang lobbied US officials for approval. He argued that global market access strengthens American leadership. Huang said restricting exports weakens competitiveness.
Some US officials disagreed. They warned the chips could benefit China’s military. Others feared damage to US AI progress.
Semiconductor analyst Austin Lyons said Chinese firms will seek H200 chips. He said demand will last until domestic alternatives improve. Lyons noted Nvidia will accept lower margins on China sales. He added that government fees will reduce profits.
Potential precedent for trade policy
Marc Einstein from Counterpoint Research called Trump’s plan unusual. He said the government taking a direct cut from sales could set a precedent. Einstein suggested the model might influence future trade negotiations. Other sectors could face similar arrangements.
