Donald Trump’s decision to let Nvidia resume selling advanced chips to China turns export controls into a new form of dealmaking, one that blends national security with revenue sharing. It also tests how far he is willing to go in using America’s AI crown jewels as leverage to stabilize an uneasy relationship with Xi Jinping.
From Chip Ban To Cover Charge
Under the new policy, Nvidia’s H200 — its second‑most advanced AI chip — can go to “approved” Chinese customers, but only if a 25% fee is paid to the U.S. government. The truly bleeding‑edge Blackwell and Rubin systems remain off the table, allowing Washington to argue it is cashing in without fully caving in.
Wall Street Cheers, Hawks Fume
Investors see the move as a chance for Nvidia to claw back billions in potential China revenue, even as analysts debate how much demand Beijing really has for a chip it views as a constrained compromise. Security hawks, meanwhile, warn that even “second‑best” silicon can help accelerate China’s AI and military ambitions, turning Trump’s tech détente into fresh fodder for hearings on Capitol Hill.
Xi’s Cautious Smile
For Xi Jinping, access to H200 chips offers a partial reprieve from years of U.S. tech denial, but one wrapped in reminders of American gatekeeping. Chinese regulators are already signaling they may ration access and continue to push domestic alternatives, ensuring that any gratitude arrives heavily hedged.
A New Model Of Chip Diplomacy
The arrangement hints at a broader Trump doctrine: keep China dependent on U.S. technology, charge a premium for the privilege, and call it both a security measure and a jobs program. Whether this becomes lasting “silicon détente” or just another volatile chapter in U.S.–China rivalry may depend less on transistor counts and more on how long Trump and Xi can tolerate each other’s definition of a “win‑win” deal.
The Sources
[1] Trump says he’s letting Nvidia sell advanced chips to China https://www.cbsnews.com/news/trump-letting-nvidia-sell-h200-advanced-chips-china/
[2] Trump gives Nvidia the OK to sell advanced AI chips to China https://www.bbc.com/news/articles/ckg9q635q6po
[3] Trump’s Nvidia Shift Hands Xi an Opening on Security Curbs https://finance.yahoo.com/news/trump-nvidia-shift-hands-xi-114550333.html
[4] Nvidia Wins Trump’s Approval to Sell H200 AI Chips in China https://www.bloomberg.com/news/articles/2025-12-08/nvidia-set-to-win-us-approval-to-export-h200-ai-chips-to-china
[5] US to open up exports of Nvidia H200 chips to China, Semafor reports https://www.reuters.com/world/china/us-open-up-exports-nvidia-h200-chips-china-semafor-reports-2025-12-08/
[6] Trump’s greenlight for Nvidia chip sales to China sparks US security concerns https://www.reuters.com/world/china/us-china-hawks-say-trump-approved-nvidia-chip-sales-china-will-supercharge-its-2025-12-09/
[7] Nvidia Has Permission to Sell H200 Chips to China. Why It Might Not Matter Much for the Stock. https://www.barrons.com/articles/nvidia-stock-price-h200-ai-chips-china-7b0ce272
[8] Nvidia can sell the more advanced H200 AI chip to China — but will Beijing want them? https://www.cnbc.com/2025/12/09/nvidia-can-sell-h200-ai-chip-to-china-but-will-beijing-want-them.html
[9] China’s Access to Powerful Nvidia Chips Comes at ‘Critical Moment’ https://www.nytimes.com/2025/12/09/business/china-gains-trump-nvidia-chips.html
[10] Trump Approves Export of Powerful US Chips to China—What to Know https://www.newsweek.com/trump-approves-export-of-powerful-us-chips-to-china-what-to-know-11178097
[11] US-China tech thaw? Trump clears Nvidia H200 exports – why it matters https://www.scmp.com/economy/global-economy/article/3335774/us-china-tech-thaw-trump-clears-nvidia-h200-exports-why-green-light-matters
[12] Trump relaxed restrictions on a key AI chip for China. Beijing isn’t saying thank you. https://www.cnn.com/2025/08/17/tech/nvidia-china-beijing-trump-ai-intl-hnk
[13] Nvidia Chips Will Be on the Table When Trump Meets Xi https://dominotheory.com/nvidias-chips-will-be-on-the-table-when-trump-meets-xi/
[14] Nvidia’s China Lobbying Wins Big. But the True Payoff is Less Certain. https://www.nytimes.com/2025/12/09/business/dealbook/nvidias-china-lobbying-chips.html
[15] Chipmaker Stocks Fall After Trump Clears AI Chip Exports To China https://www.forbes.com/sites/siladityaray/2025/12/09/nvidia-shares-fall-after-trump-allows-sale-of-ai-chips-to-china/
[16] Trump Clears Sale of More Powerful Nvidia A.I. Chips to China https://www.nytimes.com/2025/12/08/business/trump-nvidia-chips-china.html
[17] Donald Trump decides to let Nvidia export H200 chips to China https://www.ft.com/content/3a1f9360-3466-43f1-92a3-0c3647a8e15a
[18] Trump clears way for sale of powerful Nvidia H200 chips to China https://www.aljazeera.com/economy/2025/12/9/trump-clears-way-for-sale-of-powerful-nvidia-h200-chips-to-china
[19] Two more perps apprehended over smuggling of $160 million of … https://www.tomshardware.com/tech-industry/semiconductors/two-more-perps-apprehended-over-smuggling-of-usd160-million-of-nvidia-chips-to-china-doj-says-h100-and-h200-shipments-were-relabelled-with-a-fictional-brand-to-dodge-export-controls
[20] Nvidia Wins Trump’s Approval to Sell H200 AI Chips to China, But … https://www.investopedia.com/nvidia-wins-trump-approval-to-sell-h200-ai-chips-to-china-but-there-is-a-catch-nvda-11864899
