Trump is weighing permission for Nvidia to ship H200 chips to China.

crypthub

about 4 hours ago

Export License Discussions

White House officials are weighing export licenses that could let Nvidia’s H200 AI chips reach Chinese firms, marking a sharp shift from the bans imposed three years ago. The talks are part of a broader effort by President Trump to open diplomatic channels with Xi Jinping. No decision has been made, but the mere consideration signals a policy reversal.

Chip Hierarchy and Policy Shifts

The H200 is more powerful than the older H20 model already allowed in China, yet it remains based on Nvidia’s outdated Hopper design, unlike the top‑tier Blackwell chips that stay banned. Treasury Secretary Scott Bessent suggested Blackwell chips might be exported once they become obsolete, “maybe in a year or two.” Earlier this year the administration blocked H20 shipments, then quietly approved them in exchange for a 15% revenue cut tied to a disputed rare‑earths trade arrangement.

Political and Market Reactions

Beijing has told its companies not to buy the H20 or other China‑specific Nvidia products, urging domestic alternatives despite their inferior performance. Nvidia protests the restrictions, arguing they hand the market to foreign competitors, while a bipartisan Senate group drafts legislation to bar all advanced‑chip licenses to China, threatening the H200 plan. Following the news, Nvidia’s stock rose 2% to $184.29.