Trump Approves Nvidia H200 AI Chip Exports to China: 25% Revenue Deal Reshapes US-China Tech War

President Donald Trump announced on December 8, 2025, that the US will allow Nvidia to export its powerful H200 AI chips to vetted customers in China, reversing Biden-era restrictions while imposing a 25% revenue cut to the US government. This decision followed talks with Chinese President Xi Jinping, who responded positively, and a meeting with Nvidia CEO Jensen Huang. Excluded from the deal are Nvidia’s advanced Blackwell and Rubin chips, preserving curbs on cutting-edge tech.

Nvidia H200 AI Chip: Powerhouse for AI Innovation

The Nvidia H200 Tensor Core GPU, built on

Hopper architecture, delivers unmatched AI performance with 141GB of HBM3e memory and 4.8 TB/s bandwidth—nearly double the H100’s capacity. It accelerates generative AI and large language models (LLMs) like Llama2 by up to 2x in inference speed, while boosting high-performance computing (HPC) tasks up to 110x faster than CPUs. Chinese tech firms covet these chips for training massive AI models amid surging demand.

This export approval unlocks billions in lost revenue for Nvidia, valued over $4.5 trillion, as China ramps up domestic AI amid global hardware dominance. However, sales target only “approved commercial customers” vetted by the US Commerce Department to ensure national security.

From Biden Curbs to Trump Rollback

Biden’s administration tightened export controls in 2023-2024, blocking advanced chips like H200 to slow China’s AI and military tech growth, forcing Nvidia to sell downgraded H20/H21 variants. Trump criticized these as innovation killers, costing US firms billions on unwanted products. His policy extends similar terms to AMD and Intel, prioritizing jobs and manufacturing.

The shift stems from Huawei’s AI gains and industry pressure, balancing security with competition. Trump informed Xi post a South Korea summit preliminary trade pact, ending China’s reported Nvidia order cancellations.

Geopolitical Stakes in US-China Chip Race

China’s push for self-reliance includes blacklisting Nvidia imports earlier in 2025, favoring homegrown chips despite quality gaps. Yet Beijing may limit H200 access despite US approval, per reports, complicating the deal. Critics in Congress push bipartisan bills for 30-month bans, fearing AI-fueled military advances.

Nvidia hailed the move as supporting “high-paying jobs and manufacturing,” with shares rising. It follows Trump’s first-term Huawei/ZTE bans but pivots to revenue-sharing amid detente.

Aspect	Biden Policy (2023-2024)	Trump Policy (2025)
H200 Exports	Blocked; downgraded chips only	Allowed to approved buyers; 25% US cut
Newer Chips (Blackwell/Rubin)	Fully restricted	Remains banned
Revenue Impact	US firms lose billions	Funds jobs, manufacturing
China Response	Order cancellations	Positive from Xi; potential limits

Future of Global AI Supply Chain

This H200 deal tests Washington’s balance: sustaining Nvidia’s edge while curbing China’s leap. Commerce finalizes details, but congressional pushback and Beijing restrictions loom. For India, it signals opportunities in neutral AI hardware amid US-China tensions—vital for content creators leveraging AI tools.