Trump Team Considers Greenlighting Nvidia H200 for China

Trump officials are weighing whether to approve limited U.S. chip exports to China, signaling a possible policy shift after years of tightening controls on advanced semiconductors. 

Early discussions point to Nvidia’s H200 processors as a potential compromise, offering more power than China’s current options but still below the most advanced U.S. technology. 

The move reflects ongoing strategic calculations as Washington navigates competition with Beijing while managing economic and diplomatic pressures.

Will Trump Teams Greenlight The Export?

Internal conversations within the White House are already underway. According to those familiar with the matter, Trump’s team is assessing the possibility of granting export licenses that would allow Nvidia to send its H200 artificial intelligence chips to Chinese companies. 

These chips are widely used to train large-scale AI models. While no final decision has been made, the debate marks a notable departure from previous restrictions imposed over the past three years.

Talks follow Trump’s recent meeting with China’s President Xi Jinping, although the topic was reportedly not raised during their face-to-face session. Officials participating in follow-up negotiations say communication channels remain open. 

The discussions now revolve around determining which processors, if any, could be shipped without undermining what the administration considers sensitive national security interests.

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Nvidia H200 as a Middle-Ground Option

The H200 chip sits between the currently allowed H20 and the far more powerful Blackwell line, which remains prohibited in China. The H200 is an upgraded version of Nvidia’s Hopper-based architecture but still lacks the full capabilities of the Blackwell generation used in U.S. data centers. Approving the H200 would give China access to a stronger processor while maintaining a technological buffer that Washington views as critical.

source: Kenfatech

Trump’s Treasury Secretary, Scott Bessent, recently suggested that even Blackwell chips might someday be exportable—though only once they are outdated relative to U.S. standards. His comments contrast sharply with the administration’s earlier stance. Five months prior, Bessent stated there was no intention to broaden China’s semiconductor access and even claimed they had blocked the weaker H20. 

That position later softened when the U.S. quietly permitted H20 shipments in exchange for a 15% revenue share. Officials described this as part of a wider rare-earth minerals understanding with Beijing.

However, multiple individuals familiar with the London-based discussions challenged that narrative, saying no formal trade deal existed. China’s Commerce Ministry later confirmed it had allowed rare-earth exports because the U.S. eased certain restrictions, while separately acknowledging the approval of H20 licenses.

Commerce Secretary Howard Lutnick defended the decision by arguing that selling China older-generation chips would keep them dependent on U.S. technology without compromising American dominance. In his words, China would receive “not our best stuff, not our second-best stuff, not even our third-best.”

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Beijing Pushes Local Chips but Still Prefers Nvidia

Despite Washington’s approval, Beijing has instructed Chinese companies not to purchase the H20 or other reduced-performance Nvidia models created specifically to satisfy U.S. rules. China continues promoting domestic semiconductor development through firms such as Huawei, yet most of the country’s tech ecosystem still views Nvidia hardware as superior for large-scale AI workloads.

Local chips remain less powerful and more difficult to scale across major commercial AI applications. 

As AI data centers continue expanding, the performance gap has become increasingly difficult for Chinese firms to ignore.

Nvidia has expressed frustration over U.S. export restrictions, saying the current rules hand a large and growing market to foreign competitors. 

The company emphasized that being locked out of China’s data-center computing sector does not affect its ability to supply U.S. customers but does weaken its global competitive position. 

Nvidia CEO Jensen Huang has met with U.S. officials multiple times in an attempt to ease the restrictions.

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Political Resistance Intensifies

The debate has spread to Congress, where a bipartisan group of senators is preparing legislation that would force the Commerce Department to deny all advanced-chip license applications for China. 

If enacted, this would block any attempt by the Trump administration to approve H200 exports.

The White House and Commerce Department have not commented on whether they support the H200 proposal. Inside the administration, opinions remain split. Some advisers view the H200 as an acceptable compromise—stronger than the H20 but far below Blackwell. 

Others argue that any additional access risks accelerating China’s AI capabilities.

Lawmakers from both parties share concerns that incremental chip sales, even if limited, could help China shrink the technology gap that U.S. policymakers have spent years trying to widen.

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Nvidia Market Reaction

Nvidia shares climbed 2% to $184.29 following reports of the potential policy shift. Investors appear optimistic that even restricted access to China could revive part of Nvidia’s largest international market, though any final decision will depend on the administration’s internal debates and congressional pressure.

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FAQs

What is the Nvidia H200 chip?

The H200 is an advanced AI accelerator based on Nvidia’s Hopper architecture, positioned between the weaker H20 and the banned Blackwell series.

Why is the U.S. restricting AI chip exports to China?

Washington aims to prevent China from accessing high-end processors that could strengthen military or state-backed AI capabilities.

Why is the Trump administration considering allowing H200 exports?

Officials see the H200 as a middle option—more powerful than what China currently gets but still below America’s cutting-edge models.

Does China want Nvidia chips despite restrictions?

Yes. Chinese firms still prefer Nvidia hardware due to its performance and robust AI ecosystem, even though Beijing pushes domestic alternatives.

How did markets react to the H200 export discussions?

Nvidia shares rose following reports that the administration may consider relaxing export limits for the H200.