Trump Administration Considers Allowing Nvidia to Export H200 AI Chips to China
The Trump administration is poised to grant Nvidia approval to export its H200 AI chips to China, a decision now resting with Donald Trump following his return to the White House in 2025. The H200, which trails Nvidia's latest chips by approximately 18 months, falls below the most sensitive tier of technology restrictions. The White House aims to strike a balance between blocking all advanced chips and ceding the market entirely to Chinese competitors.
China had previously barred imports of the less powerful H20 model on security grounds, instructing firms to halt purchases. This MOVE effectively sidelined Nvidia and created opportunities for domestic suppliers in China's data center market. U.S. Commerce Secretary Howard Lutnick recently stated that the final decision lies with Trump, potentially reopening the world's largest AI chip market to Nvidia.
Despite earlier export controls implemented under the Biden administration to curb China's AI advancements, Chinese firms like DeepSeek and Alibaba have developed large models rivaling global benchmarks. Huawei has also stepped in to fill hardware gaps left by restricted U.S. supplies. Some officials within the TRUMP administration now question the efficacy of the previous policy, as Chinese innovation continues unabated.