AI chip war U-turn? Trump allows Nvidia H200 sales to China, says Xi Jinping ‘responded positively’

US President Donald Trump on Monday (Dec 8) announced that he will allow US chip giant Nvidia to ship its advanced artificial intelligence H200 chips to “approved customers” in China and other nations. The move comes after the company’s CEO, Jensen Huang, met with the US president last week. Trump said that he had informed Chinese President Xi Jinping about the decision, adding that he “responded positively”.

“I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump wrote in a post on his Truth Social platform.

“President Xi responded positively!” Trump said. He added that a 25 per cent fee on sales will be paid to the US. He said that the policy will support American jobs, strengthen domestic manufacturing and benefit American taxpayers.

The move marks a significant shift in the US policy for advanced AI chip exports. Former president Joe Biden’s administration had restricted the sale of chips to China over national security concerns regarding Beijing’s military applications.

Slamming his predecessor’s administration, Trump added, “The Biden Administration forced our Great Companies to spend BILLIONS OF DOLLARS building ‘degraded’ products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker. That Era is OVER!”

Trump further added that the Department of Commerce is finalising the details, and the same will be applied to other US tech giants like AMD and Intel.

“We will protect National Security, create American Jobs, and keep America’s lead in AI. NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal. My Administration will always put America FIRST. The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies. MAKE AMERICA GREAT AGAIN!” he wrote.

‘Thoughtful balance’

Hailing Trump’s approval, an Nvidia spokesperson told AFP, “We applaud President Trump’s decision to allow America's chip industry to compete to support high paying jobs and manufacturing in America.”

“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”