Summary
- U.S. launches interagency review of Nvidia H200 exports
- Trump backs controlled chip sales to China
- National security concerns remain central
The Trump administration has initiated a multi-agency review that could pave the way for the first-ever sales of Nvidia’s H200 artificial intelligence chips to China, according to sources familiar with the process cited by Reuters, marking a potential shift in U.S. technology export policy.
The review follows President Donald Trump’s recent pledge to allow sales of Nvidia’s H200 chips to China, subject to a 25% fee paid to the U.S. government. Trump has argued that permitting controlled exports would help U.S. firms maintain technological leadership by reducing incentives for China to accelerate domestic chip development.
According to sources, the U.S. Commerce Department has circulated license applications for the proposed shipments to the State, Energy and Defense Departments for interagency review. Under export control rules, those agencies have 30 days to assess the applications, with the final decision resting with the president if disagreements emerge. The start of the review process has not been previously reported.
The move has reignited debate in Washington. China hawks across both parties have warned that advanced AI chips could enhance Beijing’s military capabilities and undermine U.S. dominance in artificial intelligence. The H200, while slower than Nvidia’s flagship Blackwell chips, remains a powerful and widely used accelerator that has never been permitted for sale to China.
Nvidia has reportedly been considering increasing production of the H200 after initial demand from China exceeded available capacity, according to a separate Reuters report. However, uncertainty remains over whether Chinese authorities would approve domestic firms purchasing the chips if U.S. licenses are granted.
Within the administration, officials led by White House AI adviser David Sacks argue that allowing limited sales could blunt the rise of Chinese competitors such as Huawei, discouraging accelerated efforts to rival Nvidia and AMD at the cutting edge.
This article was written by Eamonn Sheridan at investinglive.com.