Trump is contemplating permitting Nvidia to ship H200 chips to China.

crypthub

about 4 hours ago

Policy Shift

White House officials are now weighing export licenses for Nvidia’s H200 AI chips to China, a stark reversal of the bans imposed three years ago. The discussion follows Trump’s recent meeting with Xi Jinping, though the chip issue was not raised directly. Internal talks focus on allowing the newer H200 while avoiding perceived national‑security risks.

Chip Hierarchy and Licensing

The H200 is more powerful than the older H20 model already permitted, but it remains based on the outdated Hopper design, unlike the top‑tier Blackwell line that stays banned. Treasury Secretary Scott Bessent suggested Blackwell chips might be sent once they become obsolete, adding ambiguity to the policy. Earlier, the administration quietly approved H20 shipments in exchange for a revenue share tied to a rare‑earth trade notion that later proved unfounded.

China’s Stance and Nvidia’s Pushback

Beijing has told its firms not to purchase the H20 or other China‑specific Nvidia products, urging a shift to domestic hardware despite its weaker performance. Nvidia argues the restrictions cede a lucrative market to foreign rivals and has engaged U.S. officials to ease the limits. The company claims its exclusion from China’s data‑center market does not affect U.S. supply.

Congressional Action and Market Impact

A bipartisan Senate group is drafting legislation to force the Commerce Department to deny all advanced‑chip licenses to China, which would block the H200 plan. Lawmakers on both sides fear that increased exports could boost China’s AI capabilities. Nvidia’s stock rose 2% to $184.29 after the news broke.