Nvidia H200 Chip Exports to China Approved by US Commerce Department

Nvidia's H200 AI Chips Cleared for Export to China

Recent developments indicate that advanced Nvidia AI chips are once again permitted for shipment to China.

Commerce Department Approval and Revenue Sharing

The U.S. Department of Commerce has authorized Nvidia to supply H200 chips to pre-approved customers within China. This decision, initially reported by Semafor, includes a stipulation that the U.S. government will receive 25% of the revenue generated from these sales, as detailed by CNBC.

Chip Specifications and Limitations

The H200 chips represent a significant technological advancement over the H20 series, which Nvidia specifically designed for the Chinese market. However, exports will be limited to H200 chips that are approximately 18 months old, according to Semafor’s reporting.

Nvidia's Response

A Nvidia spokesperson communicated to TechCrunch their appreciation for President Trump’s decision. They stated that allowing the American chip industry to compete fosters high-paying jobs and domestic manufacturing. Offering the H200 chips to vetted commercial customers, they believe, achieves a beneficial equilibrium for the United States.

Decision-Making Process

This news follows a statement made a week prior by U.S. Commerce Secretary Howard Lutnick, who indicated that the final decision regarding the export of H200 chips to China rested with President Donald Trump.

Congressional Concerns and Proposed Legislation

The approval of these chip exports is at odds with concerns raised by members of Congress regarding national security implications. Senators Pete Ricketts (Republican, Nebraska) and Chris Coons (Democrat, Delaware) jointly introduced the Secure and Feasible Exports (SAFE) Chips Act on December 4th.

SAFE Chips Act Details

The SAFE Chips Act proposes a 30-month moratorium on the issuance of export licenses for advanced AI chips to China. The timing of a potential vote on this proposed legislation remains uncertain, particularly in light of the Trump administration’s recent authorization of H200 chip sales.

Shifting Presidential Stance

While there has been bipartisan consensus in Congress regarding restrictions on advanced AI chip exports to China, President Trump’s position has been less consistent.

Previous Administration Actions

The Trump administration initially imposed licensing requirements on chip exports to China in April. Subsequently, in May, these requirements were rescinded, reversing a diffusion rule established by the Biden administration that aimed to regulate AI chip exports.

Trade Negotiations and Revenue Sharing

Over the summer, the U.S. government indicated that chip exports to China could resume, contingent upon a 15% revenue share for the government, effectively utilizing chips as a negotiating tool in trade discussions.

Market Strain and Chinese Regulations

By that point, however, the demand for U.S.-developed chips within China had diminished. In September, China’s Cyberspace Administration implemented a ban on domestic companies purchasing Nvidia’s chips, leading them to rely on less sophisticated alternatives from domestic manufacturers like Alibaba and Huawei.

Trump's Statement on Xi Jinping's Response

President Trump announced via a Truth Social post on Monday that Chinese President Xi Jinping had “responded positively” to the latest developments concerning the H200 chips.

Update on Confirmation

This report was updated on December 8th following the official confirmation of the proposed decision.