By Blessing Nweke
The US government has approved chipmaker Nvidia to resume sales of its advanced artificial intelligence processors to China, easing restrictions that had been imposed over national security concerns, the Department of Commerce said on Tuesday.
The decision allows Nvidia to export its H200 chips — the company’s second-most-advanced AI semiconductor — provided there is sufficient supply to meet demand in the United States. The chips had previously been restricted amid fears that they could accelerate China’s technological and military capabilities.
The Commerce Department’s Bureau of Industry and Security said the revised export policy applies not only to the H200 processors but also to a range of less advanced Nvidia chips. However, Nvidia’s most powerful AI processor, the Blackwell chip, remains barred from sale in China due to its cutting-edge capabilities.
President Donald Trump signaled the policy shift last month, saying Nvidia would be permitted to sell chips to “approved customers” in China while paying a 25% fee to the US government. Trump had already reversed a prior ban on chip sales last July, but tied the move to revenue-sharing requirements that effectively ensured Washington benefited financially from Nvidia’s China business.
The decision comes amid an ongoing geopolitical struggle between the US and China, as both nations race to dominate artificial intelligence development. Beijing has responded to past restrictions by encouraging domestic technology firms to boycott Nvidia’s China-bound chips and prioritize homegrown alternatives, a strategy aimed at strengthening China’s semiconductor industry. Analysts, however, say Chinese chip technology continues to lag behind US-made processors.
Throughout 2025, Nvidia CEO Jensen Huang repeatedly lobbied US officials to loosen export controls, arguing that access to global markets is critical to maintaining American leadership in AI. Still, some US policymakers remain wary, warning that advanced chips could bolster China’s military capabilities and undermine US advantages in artificial intelligence.
The latest policy underscores the delicate balance Washington is attempting to strike between economic interests and national security concerns.
Original article
Comments