While the latest chip ban reportedly ignited the growth engine of Chinese AI chipmakers, US President Donald Trump has reversed a ban on the sale of advanced Nvidia AI chips to China.
Although based on a condition that Nvidia pay 15% of its Chinese revenues to the US government, the reversal allows Nvidia to continue selling its high-end H200 chips to Beijing.
Following the suspension of the US Nvidia chip ban for China, reports began to circulate online suggesting that the latter instructed its technology companies to stop purchasing Nvidia chips intended for the Chinese market.
Nvidia applauds Trump’s decision and stated that the revival of Nvidia chips to China would enable the US chip industry to compete globally and promote high-paying jobs in the US, BBC reported.
Although the H200 chip is a generation behind Nvidia’s more advanced Blackwell chip, it is still a pioneer in AI semiconductors.
Nvidia CEO Jensen Huang emphasized the importance of global access to technology, including for China, and warned that the country is rapidly advancing in chip development.
In a statement, Nvidia noted that providing H200 chips to approved commercial customers, investigated by the Commerce Department, represents a balanced approach that benefits the U.S.
While Nvidia’s stock experienced a slight uptick following the announcement, concerns about national security implications remain intact. US experts warn that easier access to advanced chips could improve China’s military capabilities, particularly in AI applications.
Analysts suggested the move would “buy time” for talks between the US and China over rare earth minerals, which are crucial for electronics production, as China increasingly reduces its reliance on US technology.
