Updated on December 9, 2025 — CBS News
President Trump announced Monday that he will allow California-based Nvidia to sell its advanced H200 AI chips to approved customers in China, marking a notable relaxation of export restrictions for the company. The move, announced on the president’s social platform, includes a U.S. government cut of 25 percent on chip sales to China and excludes Nvidia’s most advanced Blackwell system and the upcoming Rubin system.
Trump said he discussed the arrangement with Chinese President Xi Jinping, who he said ‘responded positively,’ and added that the sales will proceed under conditions intended to protect national security. The Department of Commerce is finalizing the implementation details. Trump also indicated the same framework would be applied to other U.S. chipmakers, including AMD and Intel.
Nvidia welcomed the decision, with a company spokesperson calling it a thoughtful balance that benefits the United States. China’s foreign ministry described economic cooperation between the two countries as essential and mutually beneficial during a routine Beijing briefing.
Nvidia designs high-performance processors used to power AI systems and has emerged as one of the most valuable U.S. tech firms, with a market capitalization of roughly $4.5 trillion as of Monday. Both the Biden and Trump administrations previously imposed export limits on advanced computing chips to certain Chinese entities, citing concerns about potential military uses or accelerating Chinese AI capabilities in ways that could harm U.S. interests. Congressional lawmakers from both parties have supported restrictions to protect national security and U.S. technological advantage.
Nvidia has lobbied for expanded access to the Chinese market. CEO Jensen Huang has argued that strict export controls have encouraged China to develop a domestic AI chip industry; Huang met with Trump several times in recent months, including a meeting last week that company and administration officials say addressed the export rules.
This announcement follows prior administration efforts to negotiate access for U.S. chipmakers. In August, the administration planned to grant export licenses to Nvidia and AMD in exchange for a 15 percent share of revenue from sales to China and proposed taking a 10 percent stake in Intel as part of federal grants to bolster domestic semiconductor manufacturing.
The new approach signals a shift toward managing exports through conditional approvals and revenue-sharing arrangements rather than outright bans, while keeping the most advanced systems off-limits. The Commerce Department’s forthcoming guidance will determine how the policy is implemented and which Chinese customers qualify for purchases.