Trump Adjusts US Strategy on Advanced Technology
US President Donald Trump allows Nvidia to sell its H200 AI chips to “approved customers” in China. He says the plan protects national security, supports American jobs and keeps the US ahead in artificial intelligence. The decision also covers other US chipmakers like AMD and follows heavy lobbying from Nvidia chief Jensen Huang, who visited Washington last week.
Nvidia Faces Pressure in a Global Tech Rivalry
Nvidia, the world’s top chipmaker and most valuable company, remains caught between Washington and Beijing. The firm had faced a ban on selling its most advanced chips to China. Trump lifted the ban in July but demanded that Nvidia pay 15% of its China revenue to the US government. Beijing then reportedly told local tech firms to stop buying Nvidia chips made for the Chinese market.
Industry Welcomes the New Decision
Nvidia praises the move and says it strengthens competition and supports high-paying US jobs. The company shared this message in a statement to a major British news outlet. The H200 is one generation behind Nvidia’s Blackwell chip, which many experts call the world’s most advanced AI semiconductor. Jensen Huang said in September during an interview with a well-known British broadcaster that people worldwide should access this technology, including users in China. He also warns that China’s growing chip ecosystem places it close behind the US in development. Nvidia welcomes Trump’s step again and calls the plan for vetted customers a balanced approach that benefits the US. The company’s shares rose slightly after the announcement.
Debate Over Security and Critical Resources
Trump writes on social media that “25% will be paid to the United States of America.” Journalists have contacted the White House for details on the plan, which could face pushback from national security hawks in Congress. Analysts say limited sales of H200 chips give the US time to negotiate rare earth agreements with China and avoid global supply chain disruptions. China dominates rare earth processing, a key part of electronics production. Experts say access to H200 chips will strengthen China’s tech sector but will not stop Beijing from reducing its dependence on US suppliers.
Experts Warn of Military Risks
Observers note that Beijing earlier urged local firms to reject Nvidia’s older H20 chips and shift to domestic models. 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-quality AI chips helps China deploy AI systems for military use. He argues that Beijing aims to use advanced chips for battlefield advantage.
