US Revises Rules for Advanced AI Technology
US President Donald Trump now allows Nvidia to sell its H200 AI chips to “approved customers” in China. He says the move safeguards national security, supports American jobs, and maintains the US lead in artificial intelligence. The policy also covers other US chipmakers like AMD and follows lobbying by Nvidia CEO Jensen Huang, who visited Washington last week.
Nvidia Caught Between US and China Pressures
Nvidia, the world’s most valuable chipmaker, sits at the center of rising tensions between Washington and Beijing. The firm previously faced a ban on selling its most advanced chips to China. Trump lifted the 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 purchasing Nvidia chips intended for the Chinese market.
Industry Praises Policy Shift
Nvidia welcomes the decision, saying it strengthens competition and protects high-paying US jobs. The company shared this message with a major British news outlet. The H200 chip is one generation behind Nvidia’s Blackwell model, widely regarded as 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 have access to this technology. He also warns that China’s growing chip ecosystem is quickly catching up to the US. Nvidia calls the vetted-customer plan a balanced solution benefiting America. The company’s shares rose slightly after the announcement.
Security Concerns and Supply Chain Challenges
Trump writes on social media that “25% will be paid to the United States of America.” Reporters have asked the White House for clarification, and Congress may oppose the plan. Analysts say controlled H200 sales give the US time to negotiate rare earth agreements with China and prevent disruptions to global supply chains. China dominates rare earth processing, which is essential for electronics production. Experts say access to H200 chips strengthens China’s tech sector but will not prevent Beijing from reducing its dependence on US suppliers.
Military Use Remains a Key Risk
Observers note that Beijing previously urged local firms to reject Nvidia’s older H20 chips and adopt domestic alternatives. Researchers at Georgetown University’s Center for Security and Emerging Technology warn that China’s military already uses advanced US-designed chips to build AI-enabled systems. Analyst Cole McFaul says easier access to high-end chips helps China deploy AI systems for military purposes and achieve battlefield advantages.
