The United States government has approved the sale of Nvidia’s advanced artificial intelligence chips to China, easing restrictions that had previously limited exports over national security concerns.
The Department of Commerce confirmed on Tuesday that Nvidia will be allowed to ship its H200 processors—its second-most-advanced AI semiconductor—to Chinese customers, provided there is sufficient supply available within the United States.
The H200 chips had been restricted by Washington amid fears they could give China’s technology sector and military a strategic advantage. Under the revised policy, Chinese buyers must meet strict security requirements and are prohibited from using the chips for military purposes, according to the Commerce Department’s Bureau of Industry and Security.
President Donald Trump said last month that his administration would permit chip sales to “approved customers” in China, while imposing a 25% fee on the transactions.
Nvidia welcomed the decision, saying it would support US manufacturing and job creation. A company spokesperson told the BBC that easing the restrictions would benefit both the industry and the broader American economy.
The policy change does not apply to Nvidia’s most advanced AI processor, the Blackwell chip, which remains barred from sale in China.
China responded critically to the announcement. Chinese embassy spokesperson Liu Pengyu said Beijing opposes what it describes as the “politicisation and weaponisation” of technology and trade, warning that such measures disrupt global supply chains and harm mutual interests.
Nvidia has found itself at the center of intensifying US-China tensions over artificial intelligence, a sector both countries view as strategically critical. While Trump temporarily lifted chip restrictions last July, he also demanded that Nvidia share a portion of its China-related revenue with the US government.
China has since reportedly encouraged domestic firms to reduce reliance on Nvidia chips and prioritize locally produced alternatives, though analysts note that Chinese semiconductor technology continues to trail behind US capabilities.