Nvidia wins partial China access- Trump greenlights H200 shipments with 25% revenue-share rider

In a significant recalibration of Washington’s technology controls, US President Donald Trump on Monday said Nvidia will be permitted to ship its H200 artificial-intelligence processors to “approved customers” in China and other jurisdictions—provided the United States receives a 25% share of the revenue generated from those sales.

The announcement, made by Donald Trump via a Truth Social post, marks the most substantial opening for US chip exports to China since the Biden administration tightened restrictions in 2022, which limited exports of advanced AI chips and semiconductors to China over national security concerns.

Donald Trump added that shipments would only go to “approved customers,” and that chipmakers such as Intel Corp. and Advanced Micro Devices Inc. would also be eligible.

“We will protect National Security, create American Jobs, and keep America’s lead in AI,” Trump said in his post. “NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal,” referring to more advanced lines of Nvidia chips. Bloomberg reported last month that the administration was considering the H200 approvals.

What conditions has the White House attached to the deal?

Payment to the American government would come as a 25% tariff when the chips are shipped from manufacturing sites in Taiwan to the US for inspection by the Commerce Department’s Bureau of Industry and Security as part of a security review, Bloomberg reported, quoting a Commerce Department official.

The chips would then be shipped to customers in China.

Trump said that Chinese President Xi Jinping “responded positively” to the proposal and argued that the arrangement “will support American Jobs, strengthen US Manufacturing, and benefit American Taxpayers.”

The US president added that “The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies.”

The requirement for a 25% US government cut represents an escalation from the 15% revenue-sharing arrangement Nvidia and AMD accepted in August for their China-bound chips.

Around that time, Beijing reportedly cautioned Chinese firms against deploying Nvidia’s H20 processor—a customised, lower-performance model intended to comply with US restrictions.

How does the H200 differ from Nvidia’s previous China-specific chips?

The H200 is a more capable processor than the H20, yet still sits below Nvidia’s most advanced systems. Analysts say its inclusion in the new carve-out underscores Washington’s attempt to strike a middle path: enabling US companies to participate in the vast Chinese AI market while retaining oversight over high-end capabilities.

Market reaction was swift but tempered.

Nvidia shares climbed on initial reports that the Commerce Department would authorise the China shipments, but the rally faded later in the session; the stock settled roughly 2% higher in after-hours trading.

How has industry responded to the revised export policy?

Nvidia publicly welcomed the decision.

“We applaud President Trump’s decision to allow America’s chip industry to compete to support high-paying jobs and manufacturing in America,” a company spokesperson told CNBC.

“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” the spokesperson added.

What does this mean for the US–China semiconductor relationship?

Semiconductors remain the strategic fulcrum of the technological and geopolitical rivalry between Washington and Beijing. China’s own export controls on rare-earth minerals—vital inputs for advanced chip fabrication—triggered US threats of sweeping tariff hikes under the previous Trump administration.

Tensions eased modestly after Trump and Xi Jinping met in South Korea in late October and agreed to a tentative truce on chip-related retaliation. According to the White House, China committed to halt measures targeting US semiconductor firms. Trump later said that he raised the issue of Nvidia exports directly with Xi during those discussions.

The authorisation of H200 sales to China marks a strategic win for Nvidia, which has been lobbying both President Trump and Congress to loosen export restrictions that have effectively shut the company out of the world’s second-largest AI market.

Since the November 2024 election, Jensen Huang has cultivated a close rapport with Trump and has argued that stringent controls ultimately strengthen China’s own technology champions, including Huawei Technologies.

However, analysts warn that relaxing the rules carries geopolitical and competitive risks. Allowing China access to the H200 and chips of comparable capability could advantage domestic firms such as DeepSeek that are vying with US companies in advanced artificial intelligence, said Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations.