Trump Administration Approves Nvidia H200 Chip Sales to China with 25% Fee and New Restrictions

The TRUMP administration has greenlit Nvidia's H200 chip sales to China under stringent new conditions—a 25% tariff and rigorous testing mandates. U.S. firms must now demonstrate adequate domestic supply, while Chinese buyers face heightened security checks and military-use prohibitions. These measures mark a departure from previous policy, sparking bipartisan criticism over potential risks to U.S. AI dominance.

Chinese tech giants have already placed orders exceeding 2 million H200 units—nearly triple Nvidia's current inventory—highlighting insatiable demand for the $27,000-per-unit processors. Analysts like Seaport Research's Jay Goldberg characterize the export rules as a precarious compromise: "This looks like a Band-Aid, a temporary attempt to cover the huge gap among the U.S. government’s export policy makers."

The approval follows President Trump's controversial pledge last month to allow sales contingent on revenue sharing. Observers note the administration's transactional approach reflects broader tensions in balancing economic interests with national security concerns, particularly as Chinese firms continue finding workarounds to access cutting-edge semiconductors.