US Greenlights Nvidia H200 Exports to China
In a significant shift in US export policy, President Donald Trump announced on Monday, December 8, 2025, that the United States will allow Nvidia to sell its advanced H200 artificial intelligence (AI) chips to approved customers in China. The announcement, made via a post on Truth Social, stipulates that these exports will be subject to a 25% fee, with the proceeds going to the United States. This decision marks a partial reversal of previous restrictions imposed on high-end chip exports to China.
Details of the H200 AI Chip and Export Conditions
The Nvidia H200 is a powerful AI accelerator, representing the company's second most advanced chip from its Hopper generation. It is designed to significantly boost performance for generative AI, large language models (LLMs), and high-performance computing (HPC) workloads. Key specifications include 141GB of HBM3e memory and a bandwidth of 4.8 terabytes per second (TB/s), offering substantial improvements over its predecessor, the H100. President Trump emphasized that the exports would proceed 'under conditions that allow for continued strong National Security.' The Department of Commerce is currently finalizing the specific terms of this arrangement.
The 25% Fee and Broader Policy Implications
The 25% fee on H200 chip sales to China is described as a 'tariff-like fee' or a 'revenue-sharing condition' and will be collected when the chips arrive in the United States for security review before re-export. This mechanism is part of a broader strategy that President Trump indicated would also apply to other major American chip manufacturers, including Advanced Micro Devices (AMD) and Intel. Analysts suggest this 'sliding scale' approach aims to allow the export of older, yet still advanced, US technology to maintain market share and potentially reduce China's drive for domestic chip self-reliance, while still withholding the most cutting-edge innovations like Nvidia's Blackwell and upcoming Rubin series chips.
Reactions and Future Outlook
Nvidia has welcomed the decision, with a spokesperson stating that 'offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.' However, the move has drawn criticism from some US lawmakers. Democratic senators Elizabeth Warren and Andy Kim, among others, have voiced concerns over national security implications, calling the decision a 'colossal economic and national security failure' and warning that access to such chips could enhance China's military and surveillance capabilities. On the Chinese side, while a direct confirmation of an agreement was not provided, a spokesperson for China's foreign ministry reiterated the country's stance on advocating for mutual benefit and win-win outcomes through cooperation. Reports also indicate that Beijing may still implement its own restrictions, potentially limiting access to the H200 chips through approval processes, as it continues to prioritize domestic semiconductor development.
6 Comments
Manolo Noriega
On one hand, this move maintains US market share and generates revenue, which is good for American companies and the economy. However, it also raises questions about how effectively we can truly control the end-use of these powerful chips once they are in China.
Fuerza
While the 25% fee provides a clear economic benefit for the US, it's hard to ignore the potential national security risks of allowing advanced AI chips into China. We need to be careful not to inadvertently accelerate their military tech.
Ongania
Unbelievable. We're literally funding their AI development against us.
Fuerza
The strategy of allowing older, yet still advanced, tech with a fee might curb China's self-reliance efforts to some extent. Yet, giving them access to the H200, even if not the absolute cutting-edge, still significantly boosts their AI capabilities, which is a strategic concern.
Manolo Noriega
Nvidia sees this as a balanced approach, and financially it's a win for them and the US treasury. But critics rightly point out that the geopolitical implications of strengthening China's AI infrastructure could outweigh the financial gains in the long run.
Comandante
Smart move. We get the money, they don't get our absolute best.