US to allow Nvidia H200 chip sales to China

The United States will allow Nvidia’s H200 processors, described as its second-best AI chips, to be exported to China while collecting a 25% fee on sales, US President Donald Trump said. He said the Commerce Department was finalizing the arrangement and that a similar approach would apply to Advanced Micro Devices and Intel.

Nvidia shares rose 2% in after-hours trading after the announcement, following a 3% rise during the day. Trump said he had informed Chinese President Xi Jinping, who responded positively, but Beijing has warned companies against relying on US technology, leaving demand uncertain.

The decision marks a compromise between allowing China access to Nvidia’s newer Blackwell chips and blocking US chip exports entirely. Critics in Washington warned that H200 sales could strengthen China’s military and surveillance capabilities, while Nvidia said vetted commercial sales through the Commerce Department would strike a balance that benefits the United States.

The approval comes as China works to reduce dependence on Nvidia and promotes domestic chipmakers including Huawei Technologies, Cambricon and Moore Threads. The same day, the Justice Department announced a China-linked smuggling case involving at least $160 million worth of controlled Nvidia H100 and H200 chips.