The US government has given chip giant Nvidia the green light to sell its advanced artificial intelligence (AI) processors in China, the Department of Commerce said on Tuesday. The H200, Nvidia's second-most-advanced semiconductor, had been restricted by Washington over concerns that it would give China's technology industry and military an edge over the US.
The Commerce Department said the chips can be shipped to China granted that there is sufficient supply of the processors in the US. President Donald Trump said last month that he would allow the chip sales to approved customers in China and collect a 25% fee.
Nvidia's spokesperson told the BBC that the company welcomed the move, saying it will benefit manufacturing and jobs in the US. The Commerce Department's Bureau of Industry and Security said its revised export policy applies to Nvidia's H200 chips, as well as less advanced processors. Chinese customers must also show sufficient security procedures and cannot use the chips for military uses.
The H200 chip is a generation behind Nvidia's Blackwell processor, which is considered to be the world's most advanced AI semiconductor and remains blocked from sale in China. Chinese embassy spokesman Liu Pengyu told the BBC on Wednesday that Beijing has consistently opposed the politicisation and weaponisation of tech and trade issues.
Nvidia has been caught in a geopolitical tug-of-war between the US and China - two sides of a global AI race. Trump's unique proposal to collect a cut of Nvidia's sales could also set a precedent for his negotiations in other trade tariffs, suggesting that tech tensions may grow further.
The Commerce Department said the chips can be shipped to China granted that there is sufficient supply of the processors in the US. President Donald Trump said last month that he would allow the chip sales to approved customers in China and collect a 25% fee.
Nvidia's spokesperson told the BBC that the company welcomed the move, saying it will benefit manufacturing and jobs in the US. The Commerce Department's Bureau of Industry and Security said its revised export policy applies to Nvidia's H200 chips, as well as less advanced processors. Chinese customers must also show sufficient security procedures and cannot use the chips for military uses.
The H200 chip is a generation behind Nvidia's Blackwell processor, which is considered to be the world's most advanced AI semiconductor and remains blocked from sale in China. Chinese embassy spokesman Liu Pengyu told the BBC on Wednesday that Beijing has consistently opposed the politicisation and weaponisation of tech and trade issues.
Nvidia has been caught in a geopolitical tug-of-war between the US and China - two sides of a global AI race. Trump's unique proposal to collect a cut of Nvidia's sales could also set a precedent for his negotiations in other trade tariffs, suggesting that tech tensions may grow further.
