While the recent chip ban is said to have triggered the growth engine of Chinese AI chip makers, US President Donald Trump has lifted the ban on the sale of Nvidia’s advanced AI chips to China.
Although it is based on a condition obliging Nvidia to remit 15% of its Chinese revenues to the American government, the turnaround allows Nvidia to proceed with the sale of its high-end H200 chips to Beijing.
Following the suspension of the US ban on Nvidia chips for China, reports began circulating online suggesting that the latter had asked its technology companies to stop purchases of Nvidia chips for the Chinese market.
Welcoming Trump’s decision, Nvidia said the return of Nvidia chips to China would allow the U.S. chip industry to be globally competitive and promote good-paying jobs in the United States. BBC reported.
The H200 chip, although a generation behind Nvidia’s more advanced Blackwell chip, remains a pioneer in the field of AI semiconductors.
Nvidia CEO Jensen Huang stressed the importance of global access to technology, including for China, warning that the country is making rapid progress in chip development.
In a statement, Nvidia noted that providing H200 chips to authorized commercial customers, approved by the Department of Commerce, meant a balanced approach that benefited the United States.
Although Nvidia’s stock saw an uptick following the announcement, concerns remain over the national security implications. US experts warn that easier access to advanced chips could boost China’s military capabilities, particularly in AI applications.
Analysts suggested the move would “buy time” for negotiations between the United States and China over rare earth minerals, which are crucial for electronics production, as China increasingly reduces its reliance on American technology.
