9th December, 2025.
United States President Donald Trump has authorized chip manufacturer Nvidia Corporation to export its H200 artificial intelligence processors to China, imposing a 25% fee on all such transactions.
The President announced the decision via Truth Social on Monday, stating he had briefed Chinese President Xi Jinping, who reportedly “responded positively” to the arrangement. Trump emphasized that shipments would only proceed to vetted customers under conditions protecting national security.
“This policy will support American Jobs, strengthen US Manufacturing, and benefit American Taxpayers,” Trump wrote, adding that the 25% payment would go directly to the United States government.
The H200 represents Nvidia’s second-generation AI chip, significantly more powerful than the H20 model currently permitted for Chinese export. According to the Institute for Progress, the H200 delivers nearly six times the performance of the H20 in processing capabilities.
Trump clarified that more advanced Blackwell and upcoming Rubin chips remain excluded from the export agreement, with those products reserved exclusively for American customers.
The Commerce Department will finalize similar export frameworks for other semiconductor companies including Advanced Micro Devices (AMD) and Intel Corporation under comparable conditions, the President confirmed.
A White House official explained that the 25% fee will be collected as an import tax from Taiwan, where the chips are manufactured, before undergoing security reviews prior to China-bound shipment.
Nvidia Chief Executive Officer Jensen Huang met with President Trump last week to discuss export control policies. In response to the announcement, Nvidia stated: “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”
The decision follows months of deliberation within the Trump administration, which had been exploring middle-ground solutions between completely restricting advanced chip exports and allowing unrestricted sales that might strengthen Chinese competitors like Huawei Technologies.
However, the move faces criticism from national security experts and lawmakers. Eric Hirschhorn, former senior Commerce Department official during the Obama administration, called it “a terrible mistake to trade off national security for advantages in trade.”
Several Democratic senators described the decision as a “colossal economic and national security failure,” while Republican Representative John Moolenaar, Chairman of the House China Select Committee, warned that China would use the technology to enhance military capabilities.
Beijing has recently discouraged Chinese technology companies from purchasing Nvidia’s downgraded chips, including the H20, RTX 6000D and L20 models, citing security concerns. Analysts suggest Chinese regulators may soften their stance following Trump’s announcement and Xi’s positive response.
George Chen, partner at The Asia Group consultancy, expects Chinese state media to adopt a more welcoming narrative toward Nvidia following the diplomatic exchange between the two leaders.
Nvidia shares rose 2% in after-hours trading following the announcement, building on a 3% gain during regular trading hours.
The policy represents a significant reversal from export restrictions initially imposed during the Biden administration, which aimed to prevent China from advancing its military and AI capabilities using American semiconductor technology.