NVIDIA will be allowed to ship its H200 chips to approved customers in China and other countries under conditions designed to protect U.S. national security, U.S. President Donald Trump announced on Monday.
The move follows months of debate over semiconductor controls as the U.S. seeks to manage strategic competition with China while protecting its lead in artificial intelligence.
Political risk analyst Ross Feingold said the policy shift does not guarantee a revival of sales, stressing that China’s internal guidance will determine the outcome. “Even with Washington’s approval, sales will only happen if Beijing signals that Chinese companies can buy these chips,” he told AnewZ, noting that China has urged major firms to prioritise domestic processors regardless of performance gaps.
Feingold added that NVIDIA may now face a new diplomatic challenge after a year spent strengthening ties with the Trump administration. “Huang has built strong ties in Washington, but he now needs Beijing’s cooperation if he wants those sales to truly resume,” he said, suggesting that engagement with Chinese officials will be essential for any commercial breakthrough.
In a post on X (formerly Twitter), Trump said the Department of Commerce is finalising the export framework and that similar approvals will apply to AMD, Intel and other American chipmakers. On Truth Social, he added that “25% will be paid to the United States of America,” though he did not clarify whether this represents a tax, a fee or a new financial mechanism tied to chip shipments.
NVIDIA’s H200 processors are central to the development of advanced AI systems, making them a sensitive category of U.S. technology exports. China’s accelerated effort to expand its domestic semiconductor base—supported by substantial state investment—has intensified concerns among U.S. officials about maintaining long-term technological advantage.
Trump’s decision is seen as a controlled attempt to reopen limited commercial channels while keeping national security protections in place. Yet China’s response remains the decisive variable. Ross Feingold said months of buy-local pressure have reshaped procurement policies among major Chinese technology firms, and he noted that appetite for U.S. hardware may remain constrained unless Beijing signals a shift.
Industry observers note that Chinese companies now face a strategic choice: prioritise political alignment with domestic-production goals, or seek the performance gains associated with NVIDIA’s top-tier chips. For some firms, the political risk of appearing dependent on U.S. hardware may outweigh technical benefits, at least in the short term.
The move has prompted broader questions about whether this step opens the door to further adjustments in U.S. export policy or whether it will remain a narrowly defined exception. Much will depend on whether Beijing chooses to ease or reinforce its domestic-first approach to semiconductors.
For now, Washington has opened a pathway, but Beijing will decide whether it becomes a functioning market. The coming weeks are expected to bring clearer signals from Chinese regulators and buyers, determining whether high-end U.S. chips re-enter one of their most important markets.
Iranian-made Yassin missiles were spotted mounted on Armenian Air Force fighter aircraft during Armenia's latest military parade on Thursday (28 May),...
The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secre...
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as t...
At least 22 people have been killed - including children - and 35 others injured after a truck carrying Afghan returnees overturned in eastern Afghani...
U.S. Defense Secretary Pete Hegseth has urged Asian allies to increase military spending, warning of growing concern over China’s rapid military exp...
A growing majority of Europeans believe the European Union should pursue a more independent foreign policy and reduce its reliance on the U.S., according to a new survey published on Friday.
The United States has warned Oman against supporting any effort to impose tolls in the Strait of Hormuz, saying Washington would penalise any parties involved in facilitating such a system.
Iran has strongly condemned U.S. threats to impose sanctions on and bomb Oman following reported talks between Muscat and Tehran on jointly overseeing the Strait of Hormuz, reiterating that the Islamic Republic’s actions in the strategic waterway are “lawful”.
The U.S. and Iran have reportedly agreed an outline deal to extend their fragile ceasefire for 60 days, although the agreement still requires President Donald Trump’s approval and previous breakthroughs have failed to hold.
A group of Azerbaijani civil society organisations has called for increased scrutiny of Swiss building materials giant Holcim, citing court rulings and ongoing investigations linked to its subsidiary Lafarge's activities during the Syrian conflict.
The World Health Organization (WHO) says ongoing conflict, funding pressures and international travel restrictions are complicating efforts to contain a fast-growing Ebola outbreak in the Democratic Republic of Congo (DRC).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia and Kazakhstan signed 15 agreements during President Vladimir Putin’s state visit to Astana on Thursday (28 May), including deals on Kazakhstan’s first nuclear power plant and expanded oil cooperation with Russia.
The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secretary Gilberto Teodoro said on Saturday (30 May).
U.S. Defense Secretary Pete Hegseth has urged Asian allies to increase military spending, warning of growing concern over China’s rapid military expansion and wider activities in the region.
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Three Latvian climbers have died after falling on Mount McKinley in Alaska’s Denali National Park and Preserve, authorities and a Latvian climbing organisation have said
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 30 May, covering the latest developments you need to know.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment