US Greenlights Nvidia H200 Chips to China, Raising Security Questions
The United States will permit Nvidia to export its H200 artificial intelligence (AI) chips to China, U.S. President Donald Trump announced on Monday. Each chip will be sold with a fee collected by the U.S. government. The approval was first reported by Semafor and later confirmed by Trump on his social media platform, Truth Social. Following the announcement, Nvidia shares rose 1.2% in after-hours trading, building on a 3.16% gain during the day.
Trump said he personally informed Chinese President Xi Jinping about the decision, and Xi "responded positively." This development comes after the two leaders brokered a truce on trade and technology tensions in Busan, South Korea, in late October. The move is seen as a middle ground: the U.S. will not send its newest Blackwell and Rubin AI chips, but H200 chips will be allowed, avoiding a complete halt of exports that could strengthen Chinese tech firms like Huawei.
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Trump said the move is meant to “protect national security, create American jobs, and keep America ahead in AI.” While Nvidia’s top Blackwell chips remain restricted, allowing H200 exports could keep U.S. tech influence and support AI growth in China. Other major AI chipmakers such as AMD and Intel are expected to follow a similar approach, according to Trump.
U.S. lawmakers and China hawks have raised concerns that exporting AI chips could bolster China’s military capabilities. Advanced AI chips like the H200 can help Chinese labs develop AI supercomputers similar in performance to U.S. counterparts, although at higher costs. Senator Elizabeth Warren criticized prior media reports suggesting approval, arguing that these chips should remain reserved for U.S. companies.
Chinese regulators have scrutinized Nvidia chips over potential backdoor security risks, an allegation the company denies. Experts like Chris McGuire of the Council on Foreign Relations believe Chinese firms will still purchase H200s because they outperform domestic alternatives. Craig Singleton, from the Foundation for Defense of Democracies, noted that China may still hesitate due to state concerns over dependence on U.S. technology.
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The move reflects continued U.S.-China tech negotiations, weighing commercial and security interests. Trump previously threatened export limits after China’s rare earth policies but reversed most measures. Exporting H200 chips shows a willingness to work with China while protecting U.S. AI leadership.
