Trump just allowed Nvidia to sell the one thing to China that was restricted before, creating pushback from even his own party

According to The Hill, President Trump announced that he is officially allowing Nvidia to sell its powerful H200 chips to approved customers in China, a significant reversal of previous export restrictions. This decision is a major win for the chipmaker, especially since the administration had previously tightened the rules on powerful AI silicon heading overseas.

Nvidia is understandably thrilled about the change. An Nvidia spokesperson confirmed that they “applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America.” They feel that offering the H200 to vetted commercial customers, screened by the Department of Commerce, strikes a thoughtful balance that is great for America.

This new policy isn’t just a free pass, though. It comes with a hefty financial requirement for the chipmaker. President Trump suggested that the U.S. would receive 25 percent of the revenue generated from H200 sales. He wrote on Truth Social, “$25% will be paid to the United States of America.” That is a huge cut, and the White House has yet to provide full clarification on that specific percentage.

Trump spins the move as something that will help the US economy

The president argues that this policy supports American jobs, strengthens U.S. manufacturing, and benefits taxpayers. He even took a shot at the previous administration, saying the Biden administration forced American companies to spend “BILLIONS OF DOLLARS building ‘degraded’ products that nobody wanted.” Honestly, building intentionally degraded chips just sounds awful for innovation. President Trump declared, “That Era is OVER!”

He emphasized that this move protects national security while keeping America’s lead in AI, following his recent promise for an executive order to implement one playbook for all the states regarding AI. He also made sure to mention that Nvidia’s absolute top-tier silicon, the highly advanced Blackwell chips and the upcoming Rubin chips, are not included in this particular deal. That is crucial; we definitely want to keep the best stuff here in the U.S. for our own customers.

After recent improvements in the relationship with Chinese President Xi Jinping, President Trump confirmed the deal was finalized after communicating with him. He stated, “I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security.” He added that President Xi responded positively.

While the chipmakers are celebrating, this decision isn’t without serious controversy. Expect major pushback from China hawks, including members of the president’s own GOP. These critics argue vehemently against selling more powerful chips to Beijing. They contend that allowing sales of silicon like the H200 directly boosts China’s AI capabilities, giving them a significant technological advantage as they compete fiercely with the U.S. in the global tech landscape.