Trump Administration Clears Nvidia H200 Sales to China With 25% Government Cut

President Donald Trump said the U.S. will allow Nvidia to sell its H200 AI chip to customers in China, with the federal government taking 25% of the dollar value of those sales. The announcement followed the publication of formal regulations by the U.S. Department of Commerce, which set out detailed safeguards for the exports.

Unlike Nvidia’s earlier China-specific H20 chip, the H200 is part of the company’s Hopper generation and is also sold in the U.S. and other global markets. Trump emphasized that the H200 is no longer Nvidia’s most advanced product, noting that newer Blackwell and Rubin chips have already surpassed it in performance. “It’s not the highest level, but it’s a pretty good level,” Trump said, adding that the U.S. would benefit directly from the surcharge.

Under the new rules, exporters must certify that there is sufficient domestic supply of the H200 and that shipments to China will not divert foundry capacity needed for more advanced chips bound for U.S. customers. Chinese buyers will also be required to meet security standards, while each chip must undergo independent third-party testing in the U.S. before export. Shipments to China will be capped at 50% of the volume supplied to U.S. customers, and the filing also references similar treatment for AMD’s MI325X chip.

Nvidia welcomed the decision, saying it strikes a balance between competitiveness and security. The company has previously estimated that the Chinese AI chip market could be worth $50 billion a year. CEO Jensen Huang said last week that demand from Chinese customers for the H200 was “very high” and that production had resumed, speaking at the CES conference in Las Vegas.

Whether China will approve imports of the H200 remains uncertain, as Beijing continues to promote domestic alternatives in pursuit of semiconductor self-sufficiency. Huang said he does not expect a public announcement from Chinese authorities, predicting instead that approvals would be reflected quietly through purchase orders.

The White House also confirmed that a 25% tariff applies to certain chips, including the H200, that are imported into the U.S. for testing before being shipped onward to China. Together, the measures underscore Washington’s attempt to monetize access to U.S. AI technology while maintaining tighter control over how and where it is used.