Trump Shifts Course on High-Tech Exports
US President Donald Trump allows Nvidia to sell its advanced H200 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 decision also covers other American chipmakers like AMD and follows strong lobbying from Nvidia chief Jensen Huang, who visited Washington last week.
Nvidia Caught in a Global Power Struggle
Nvidia, the world’s leading chip producer and the most valuable company, stands at the centre of rising tensions between Washington and Beijing. The firm faced a ban on selling its most advanced chips to China. Trump reversed the ban in July but demanded that Nvidia pay 15% of its China revenue to the US government. Beijing then reportedly ordered local firms to stop buying Nvidia chips built for the Chinese market.
Industry Response to the New Policy
Nvidia welcomes Trump’s move and says it strengthens competition and supports high-paying jobs in the US. The company shared this view in a statement given to a major British news organisation. The H200 chip sits one generation behind Nvidia’s Blackwell model, which many experts consider the most advanced AI semiconductor in the world. Jensen Huang said in September during an interview with a well-known British broadcaster that people worldwide should access this technology, including users in China. He also warns that China’s homegrown chip ecosystem places the country close behind the US in development. Nvidia praises Trump’s decision again and calls the offer for vetted commercial customers a balanced approach that benefits the US. The company’s shares rose slightly after the announcement.
Debate Over National Security and Global Supply Chains
Trump claims that “25% will be paid to the United States of America” in his social media post. Reporters have contacted the White House to clarify the plan, which may face resistance from national security hawks in Congress. Analysts say limited sales of H200 chips to selected Chinese buyers give the US time to negotiate with Beijing over rare earths and avoid disruptions to global supply chains. China controls most rare earth processing, which remains essential for electronics production. Experts add that access to H200 chips will help China’s tech sector but will not stop Beijing from reducing its dependence on US suppliers.
Concerns Over Military Use of Advanced Chips
Observers note that Beijing previously urged 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 chips designed by American companies to build AI-enabled weapons systems. Analyst Cole McFaul says easier access to high-quality AI chips helps China deploy AI systems for military purposes. He argues that Beijing wants to use these advanced chips for battlefield advantage.
