The Trump administration has started a review that could allow the first shipments of Nvidia’s H200 AI chips to China.
Trump’s Policy Shift on AI Chip Exports
This decision marks a departure from the Biden-era restrictions on advanced AI chip exports to China. Trump’s team argues that allowing sales could prevent Chinese competitors like Huawei from catching up with Nvidia and AMD’s most advanced designs.
The Role of the H200 Chips
The H200 chips are Nvidia’s second-most powerful AI processors.
Inter-Agency Review Process
The Commerce Department has sent license applications for these chip sales to the State, Energy, and Defense Departments for review. Each agency has 30 days to weigh in. Officials stress the review will be thorough and not just a procedural check. The final decision rests with President Trump.
Debate Over National Security Risks
Some experts warn that exporting these chips could strengthen Beijing’s AI and military capabilities. Former officials argue that allowing sales might compromise U.S. national security and diminish America’s technological edge.
Industry Impact and Nvidia Production Plans
NVIDIA has considered increasing H200 production as demand from China exceeds current capacity. The outcome of the review could affect supply chains and global AI competition.
Looking Ahead
The review’s decision will have significant implications for U.S.-China tech relations, AI competitiveness, and national security.
