US eases AI chip export rules, opening door for Nvidia H200 sales to China

The Trump administration has softened its stance on advanced artificial intelligence chip exports to China, setting out new conditions that could allow Nvidia to sell its H200 processors to Chinese customers after months of restrictions.

In rules released on Tuesday, the US Commerce Department said applications to export AI chips to China would no longer face an automatic rejection and instead be assessed individually.

The move follows remarks last month by President Donald Trump, who said he was open to allowing chip sales to “approved customers” in China, provided exporters pay a fee of 25%.

Nvidia’s H200 chip, its second-most powerful AI processor, had been swept up in US export controls over concerns that advanced computing technology could bolster China’s tech industry and military capabilities.

Nvidia’s most advanced Blackwell chips, however, remain off-limits for the Chinese market.

The revised framework also applies to Advanced Micro Devices, which is seeking approval to sell its MI325X AI chips in China.

Under the new conditions, chipmakers will have to show that shipments to China will not come at the expense of US supply.

Export volumes will be capped at no more than half of the comparable output destined for the US market, and companies must certify that domestic buyers are not facing shortages.

The rules, overseen by the Commerce Department’s Bureau of Industry and Security, also require firms to strengthen customer vetting to prevent misuse and submit chips for third-party testing within the United States.

Nvidia has found itself at the centre of escalating US-China tensions over artificial intelligence, a technology increasingly viewed as strategic by both governments.

Last year, Trump rolled back an earlier ban on certain chip exports but demanded that US companies share a slice of China-related revenue with the government. Nvidia and AMD later agreed to remit 15% of sales from advanced AI chips sold to China.

Beijing subsequently pushed back, with reports saying Chinese authorities instructed domestic tech firms to favour home-grown semiconductors. China’s cyberspace regulator, the Cyberspace Administration of China, ordered companies including ByteDance and Alibaba to suspend testing and purchases of Nvidia’s China-focused RTX Pro 6000D chips.