The Department of Commerce has permitted Nvidia to export H200 artificial intelligence (AI) chips to approved customers in China, according to Semafor.
The U.S. government will receive a 25% share of the revenue from these sales. This development allows for the sale of H200 chips that are approximately 18 months old, according to .
Nvidia’s H200 chips offer significantly more advanced capabilities compared to the H20 chips the company previously designed for the Chinese market. A Nvidia spokesperson commented on the decision, stating, “We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”
This decision follows U.S. Commerce Secretary Howard Lutnick’s statement last week, indicating that President Donald Trump would make the final determination regarding H200 chip exports to China.
The approval to export chips to China contradicts national security concerns raised in Congress. Senator Pete Ricketts (R., Neb.) and Senator Chris Coons (D., Del.) introduced the Secure and Feasible Exports Act (SAFE) Chips Act on December 4. This proposed legislation would mandate the Department of Commerce to reject any export licenses for advanced AI chips to China for 30 months. The timing of a vote on this bill remains uncertain given the Trump administration’s recent approval of H200 chip sales.
Congressional sentiment regarding advanced AI chip exports to China has historically been consistent across party lines. The Trump administration initially imposed licensing requirements on chip companies for exports to China in April, later rescinding a Biden administration diffusion rule that would have governed AI chip exports in May. By summer, the U.S. government signaled that chip exports to China could resume with a 15% revenue share, positioning chip sales as a bargaining tool in trade negotiations.
Despite previous policy shifts, the market for U.S.-developed chips in China encountered difficulties. In September, the Cyberspace Administration of China, China’s internet regulator, prohibited domestic companies from purchasing Nvidia chips. This ban left Chinese companies to rely on less advanced domestic chips from providers such as Alibaba and Huawei.
On Monday, President Trump stated in a Truth Social post that Chinese President Xi Jinping “responded positively” to the news concerning the H200 chips.
