Trump lifts chip ban, allows advanced Nvidia AI chip sales to China

While the recent chip ban reportedly ignited the growth engine of Chinese AI chip makers, US President Donald Trump has reversed a ban on the sale of advanced Nvidia AI chips to China.

Although it is based on a condition requiring Nvidia to pay 15% of its Chinese revenues to the U.S. government, the reversal allows Nvidia to proceed with the sale of its high-end H200 chips to Beijing.

Following the suspension of the U.S. Nvidia chip ban for China, reports began circulating online, suggesting that the latter instructed its tech companies to halt purchases of Nvidia chips intended for the Chinese market.

Applauding Trump's decision, Nvidia stated the revival of Nvidia chips to China would enable the American chip industry to compete globally and foster high-paying jobs in the U.S, BBC reported.

The H200 chip, although a generation behind Nvidia's more advanced Blackwell chip, is still a pioneer in the realm of AI semiconductors.

Nvidia CEO Jensen Huang emphasised the importance of global access to technology, including for China, warning that the country is rapidly advancing in chip development.

In a statement, Nvidia noted that providing H200 chips to approved commercial customers, vetted by the Department of Commerce, signifies a balanced approach that benefits the U.S.

While Nvidia's stock underwent a slight rise after the announcement, concerns remain intact regarding national security implications. US experts warn that easier access to advanced chips could enhance China's military capabilities, particularly in AI applications.

Analysts suggested that this move would "buy time" for U.S.-China negotiations over rare earth minerals, which are crucial for electronics production, as China is increasingly reducing its dependence on American technology.