White House Revises Rules for AI Technology
US President Donald Trump now permits Nvidia to sell its H200 AI chips to “approved customers” in China. He says the move protects national security, supports American jobs and maintains the US lead in artificial intelligence. The policy also applies to US chipmakers like AMD and follows strong lobbying from Nvidia chief Jensen Huang, who travelled to Washington last week.
Nvidia Caught Between Two Superpowers
Nvidia, the world’s most valuable company and leading chip producer, sits at the centre of rising tensions between Washington and Beijing. The firm previously faced a ban on selling its most advanced chips to China. Trump removed that ban in July but required Nvidia to pay 15% of its China revenue to the US government. Beijing then reportedly instructed local tech firms to stop buying Nvidia chips built for the Chinese market.
Industry Voices Support for the Policy Shift
Nvidia welcomes the decision and says it strengthens competition and protects high-paying US jobs. The company delivered this message in a statement to a major British news outlet. The H200 sits one generation behind Nvidia’s Blackwell chip, which many experts call the world’s most advanced AI semiconductor. Jensen Huang said in September during an interview with a well-known British broadcaster that global users, including those in China, should access this technology. He also warns that China’s growing chip ecosystem places it close behind the US. Nvidia praises Trump’s approach again and calls the plan for vetted customers a balanced solution that benefits the US. The company’s shares rose slightly after the announcement.
Security and Supply Chain Issues Remain
Trump writes on social media that “25% will be paid to the United States of America.” Journalists have asked the White House for clarification, and the plan may face pushback from national security hawks in Congress. Analysts say controlled H200 sales give the US time to negotiate rare earth agreements with China and help prevent global supply chain disruptions. China holds a dominant position in rare earth processing, which is vital for electronics production. Experts say access to H200 chips will boost China’s tech sector but will not stop Beijing from reducing its reliance on US suppliers.
Warnings Over Military Use of AI Chips
Observers note that Beijing earlier encouraged local firms to reject Nvidia’s older H20 chips and switch to domestic semiconductors. Researchers at Georgetown University’s Center for Security and Emerging Technology warn that China’s military already uses advanced US-designed chips to develop AI-enabled systems. Analyst Cole McFaul says easier access to high-quality chips helps China deploy AI systems for military purposes. He argues that Beijing aims to use advanced chips for battlefield advantage.
