WASHINGTON — Dec 19, 2025 The administration of U.S. President Donald Trump has begun an interagency review that could allow Nvidia to ship its H200 artificial intelligence chips to China for the first time, according to multiple sources familiar with the matter.
The review marks a significant shift in U.S. export policy and could pave the way for limited sales of Nvidia’s second-most powerful AI chip to Chinese customers, subject to government approval and a proposed 25% fee on the transactions.
Interagency Review Underway
Officials said the U.S. Commerce Department has forwarded license applications for the proposed chip sales to the State, Energy and Defense departments for review, as required under export control regulations. Those agencies have up to 30 days to provide their assessments.
While the review process is ongoing, sources stressed it is expected to be comprehensive rather than procedural. Under U.S. law, the final decision on whether the exports proceed rests with the president.
Neither Nvidia nor the Commerce Department commented on the review, while the White House said the administration remains focused on maintaining U.S. leadership in advanced technology without compromising national security.
Policy Shift From Previous Restrictions
The move represents a clear departure from the policy of the previous administration, which imposed broad restrictions on sales of advanced AI chips to China and to countries considered potential transit points for smuggling.
Those curbs were designed to prevent U.S.-made chips from enhancing China’s military capabilities or accelerating its artificial intelligence development.
Trump has argued that allowing controlled sales could help U.S. firms maintain a technological edge by reducing incentives for China to accelerate development of domestic alternatives.
National Security Concerns Persist
The proposal has drawn criticism from lawmakers and national security experts who warn that exporting advanced AI chips could undermine U.S. strategic advantages.
Former U.S. national security officials have described the chips as a critical bottleneck limiting China’s AI progress, cautioning that easing restrictions could weaken U.S. leverage in the long term.
Questions also remain over whether Chinese authorities would permit domestic firms to purchase the chips under the proposed framework.
Industry Implications
The H200 chip, while less powerful than Nvidia’s newest Blackwell processors, remains widely used in advanced AI systems and has never previously been cleared for sale in China.
Industry sources say Nvidia has been considering boosting production of the H200 after strong interest from Chinese buyers exceeded existing capacity.
If approved, the sales would mark one of the most consequential changes to U.S. semiconductor export controls since restrictions were tightened in recent years.
