SANTA CLARA (dpa-AFX) - The U.S. government has approved the sale of Nvidia's (NVDA) advanced AI processors to China, easing restrictions that had blocked the company from shipping its H200 chips over fears they could strengthen China's tech sector and military capabilities.
The Commerce Department said the processors may be exported as long as the domestic supply in the U.S. is adequate. The revised policy also applies to some less powerful chips, with Chinese buyers required to demonstrate robust security controls and certify that the hardware will not be used for military purposes. Nvidia's most advanced Blackwell processor remains off limits.
NVDA said the decision would support U.S. manufacturing and jobs. President Donald Trump had earlier indicated he would allow sales to vetted Chinese customers, while taking a 25 percent fee on the revenue generated.
Beijing criticised the move, saying it opposes the politicisation of technology and trade and warning that such actions disrupt global supply chains. Chinese officials have consistently argued that restrictions undermine the interests of both countries.
The policy shift comes after a year of lobbying by Nvidia chief executive Jensen Huang, who has urged Washington to allow see-through access to global markets to keep American companies competitive. Some U.S. officials remain wary, arguing the chips could still benefit China's military and slow America's progress in AI.
Analysts say Chinese firms are likely to snap up H200 chips while they can, even as the government encourages domestic alternatives. Meanwhile, NVDA is expected to accept lower margins in exchange for regaining access to the market.
Observers also note that Trump's plan to skim a portion of chip sales could become a template for future trade negotiations in other sectors.
NVDA currently trades at $182.83 or 1.6% lower on the NasdaqGS.
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