Trump Approves Nvidia AI Chip Sales to China Amid Controversy

President Trump announced that he will permit Nvidia to sell its advanced H200 computer chips to "approved customers" in China, a significant shift from the previous restrictions due to national security concerns.

According to CBS News, the U.S. government will take a 25% cut from these sales, a revised figure from an earlier 15% agreement. Trump stated he informed Chinese President Xi Jinping of this decision, which Xi reportedly welcomed positively.

This move is expected to apply to other U.S. chipmakers like AMD and Intel, as the Department of Commerce finalizes the details. Nvidia CEO Jensen Huang has been lobbying for access to the Chinese market, emphasizing that U.S. export restrictions had inadvertently boosted China's domestic chip industry.

The Guardian reported that, prior to this announcement, the U.S. had prohibited sales of Nvidia's most advanced chips to China, fearing they could be used for military purposes. However, Trump's administration seeks to balance national security with economic interests, arguing that selling these chips could support U.S. jobs and manufacturing.

Yet, this decision has drawn criticism from some lawmakers, including Senators Elizabeth Warren and Andy Kim, who argue it risks enhancing China's surveillance and military capabilities. They have urged the Commerce Department to reconsider the implications of these sales on American security interests.

The Biden administration previously imposed strict export controls on powerful chips, asserting that such measures were crucial for maintaining U.S. competitiveness and security. After Trump's announcement, the Chinese foreign ministry emphasized the importance of cooperation between the two nations, suggesting that both could benefit from such economic engagements.