Trump approves Nvidia chips export to China

In a major shift from previous United States policy, President Donald Trump announced that Washington has reached an agreement with Beijing allowing American chipmaker Nvidia to resume exports of certain advanced AI processors to China.

The decision marks a strategic reversal from the strict export controls imposed under former President Joe Biden, which had sharply limited China’s access to cutting-edge artificial intelligence hardware over national security concerns.

A break from previous export restrictions

Trump revealed the agreement in a post on Truth Social, saying he informed Chinese President Xi Jinping that the United States would permit Nvidia to ship its H200 AI processors to “approved customers” in China and other countries, under terms designed to ensure continued U.S. national security.

According to Trump, President Xi “responded positively,” adding that China would pay the United States “25 percent” of the value of the exports; though he did not specify the mechanism or conditions tied to this payment arrangement.

The move represents a significant departure from the Biden administration’s export regime, which required chipmakers to develop downgraded versions of their products for the Chinese market. Those modified chips, designed with lower performance thresholds, were created to prevent potential military applications in China’s AI development programs.

Trump criticized that approach, arguing that the restrictions forced US companies to invest billions “to build inferior products nobody wanted,” a policy he claimed slowed innovation and harmed American workers.

Scope of the agreement and limits on advanced chips

While the policy shift allows Nvidia to sell H200 chips to China, it does not extend to the company’s next-generation Blackwell series or the upcoming Rubin processors. Trump emphasized that these most advanced products “remain reserved for US customers.”

The US Department of Commerce is currently finalizing the terms of the export agreement, which is expected to apply not only to Nvidia but also to AMD, Intel, and other American semiconductor firms seeking clarity on their ability to sell to Chinese clients.

Trump framed the decision as part of a broader strategy to support domestic manufacturing, protect American jobs, and generate revenue for US taxpayers, claiming that “this agreement strengthens American industry and benefits our workers.”

Political backlash and security concerns

Despite Trump’s assurances, several Democratic lawmakers sharply criticized the policy shift. In a joint statement, a group of senators warned that granting China access to more advanced AI chips would “make its weapons more lethal, enhance it cyberattack capabilities, and strengthen its industrial and economic power.”

Under Biden’s previous restrictions, exporting processors like the H200 to China was strictly prohibited due to concerns that such chips could be used to train sophisticated AI models with military or intelligence applications.

The announcement comes at a time of heightened technological tensions between Washington and Beijing, as both countries compete to assert dominance in the rapidly evolving field of artificial intelligence.

Nvidia CEO Jensen Huang has repeatedly urged the US government to ease export rules, arguing that excluding American firms from the Chinese market risks driving customers toward foreign competitors, particularly in a global industry where China remains the world’s largest consumer of semiconductors.

Alas, Trump’s decision to loosen restrictions on AI chip exports to China represents a major recalibration of US technology policy, opening the door for American chipmakers to regain access to a lucrative market while reigniting debates over national security, innovation, and global competition. As Washington finalizes the details of the agreement and Congress scrutinizes its implications, the move underscores the difficult balance between economic opportunity and strategic caution in the era of artificial intelligence.