The US government has approved the sale of Nvidia’s advanced artificial intelligence processors to China, the Department of Commerce confirmed on Tuesday. This decision permits the export of chips that had previously been restricted due to national security concerns. The approval specifically applies to Nvidia’s H200 processor, according to the US Department of Commerce. The US had limited exports of this chip over worries that it might provide China’s technology sector and military with an advantage over the US. Related: Liechtenstein Awards High-Priority Spectrum to Open Cosmos in Boost for European Space Infrastructure Under the updated export policy, Nvidia may ship the H200 to China only if there is an adequate supply of the processors in the US. Additionally, Chinese customers must demonstrate “sufficient security procedures” and confirm that the chips will not be used for military purposes. Trump Allows Sales to “Approved Customers” Last month, President Donald Trump stated he would permit Nvidia to sell the chips to “approved customers” in China and announced the US government would charge the company a 25% fee on these sales. The H200 is one generation behind Nvidia’s Blackwell processor, which remains banned from sale in China. Nvidia describes Blackwell as its most advanced AI semiconductor. Nvidia Welcomes the Policy Shift Nvidia expressed approval of the decision.

A spokesperson told the BBC that the move would support manufacturing and job creation within the US. Throughout 2025, Nvidia CEO Jensen Huang repeatedly urged Washington to allow sales of the company’s high-powered chips to China, emphasizing that access to global markets is crucial for maintaining America’s competitiveness. China Criticises US Restrictions China condemned the US decision. Liu Pengyu, a spokesman for the Chinese embassy, told the BBC that Beijing has consistently opposed the “politicisation and weaponisation of tech and trade issues. ” “We oppose blocking and restricting China, which disrupts the stability of industrial and supply chains, ” he said. “This approach does not serve the common interests of both sides. ” Beijing has reportedly instructed its technology firms to boycott Nvidia’s chips destined for China and to prioritize domestically produced semiconductors. This strategy aims to strengthen China’s own chip industry, although experts note that Chinese processors still lag behind those made in the US. Analysts Note Financial and Political Implications Semiconductor analyst Austin Lyons suggested that Chinese companies will likely seek the H200 chips until domestic options improve, adding that Nvidia would welcome any revenue from China, even if sales come with lower margins due to the US government’s share. Marc Einstein of Counterpoint Research said Trump’s “unique” proposal to collect a portion of Nvidia’s sales could set a precedent for future trade negotiations, noting it will be interesting to observe whether this model expands to other industries.