The Trump administration has launched an inter-agency review that could pave the way for the first shipments to China of Nvidia’s H200 AI chips, sources said, signaling a significant shift in U.S. export policy.
President Donald Trump recently said he would allow sales of Nvidia’s second-most powerful AI chips to China, with the U.S. government collecting a 25% fee, arguing the move would keep American firms ahead by curbing demand for Chinese-made chips. The proposal has drawn sharp criticism from China hawks, who warn it could boost Beijing’s military capabilities and narrow the U.S. lead in artificial intelligence.
According to sources, the Commerce Department has sent export license applications to the State, Energy and Defense Departments for review, triggering a process that allows up to 30 days for feedback. While the review is described as thorough, the final decision rests with Trump. The White House said the administration is committed to maintaining U.S. technological dominance without compromising national security.
The move marks a clear departure from the Biden-era restrictions that barred advanced AI chip sales to China over security concerns. Supporters within the Trump administration argue that controlled exports could discourage rivals like Huawei from accelerating domestic chip development, preserving U.S. industry leadership.
Critics remain unconvinced. Former national security officials have called the plan a strategic mistake, arguing the chips are a critical constraint on China’s AI ambitions. Nvidia and the Commerce Department declined to comment. If approved, the sales would represent the most consequential easing yet of U.S. controls on advanced AI technology exports to China.
