President Donald Trump announced Monday that he will allow chip maker Nvidia to sell its advanced H200 chips to approved customers in China. Trump said the decision will protect national security, create American jobs, and maintain the country’s lead in artificial intelligence. The policy will also apply to other US chip companies like AMD.
Policy Shift After Lobbying Effort
According to BBC News, the decision follows extensive lobbying by Nvidia CEO Jensen Huang, who visited Washington last week. Trump first reversed a chip-selling ban in July but required Nvidia to pay 15 percent of its Chinese revenues to the US government. Beijing then ordered its tech companies to stop buying Nvidia chips made for the Chinese market.
Nvidia welcomed the announcement in a statement provided to BBC News. The company said offering H200 chips to approved commercial customers vetted by the Department of Commerce strikes a thoughtful balance. Nvidia shares rose slightly on the news. Trump’s post stated that 25 percent will be paid to the United States, though the BBC sought clarification from the White House on this arrangement.
Security Concerns Over China Access
Military Applications Worry Researchers
Researchers at Georgetown University’s Center for Security and Emerging Technology raised concerns about the policy. They said China’s People’s Liberation Army uses advanced chips from US companies to develop AI-enabled military capabilities. Cole McFaul, a senior research analyst at the center, explained that easier access to high-quality AI chips enables China to deploy AI systems for military applications more easily.
Huang told the BBC in September that the US needed to make sure people can access the technology from around the world, including China. He also warned that China was close behind the US in chip development. Nvidia is both the world’s leading chip firm and most valuable company. The company has found itself at the center of a geopolitical struggle between the US and China in recent months. The policy will likely face opposition from national security hawks in Congress.
