Recently, Trump allows Nvidia to trade with china. The U.S. government, under Trump, has decided to allow Nvidia to export its “H200” artificial-intelligence chips to approved customers in China. As a part of the agreement, the U.S. will collect a 25% fee on those chip sales. The export permission is limited. The most advanced chips from Nvidia remain off limits for China under this deal.
The H200 chips are a major step up from older, export permitted versions. Giving China access could help Chinese companies and research institutions in AI and data center work. For U.S. industry and government, this move opens up a huge market for Nvidia. At the same time, the 25% fee is intended to give a cut of the gains to the U.S. Part of Trump’s argument that this benefits American jobs, taxpayers and manufacturing.
It marks a shift rather than outright blocking all high end chip exports to China. The U.S. is now applying a conditional, revenue-sharing export model. Many see this as a “compromise” balancing commercial interests and national security concerns. Critics including some U.S. lawmakers and defense experts warn that this could help China’s AI and possibly military capabilities. There is also skepticism about whether China will actually buy many of these chips. China’s government has previously encouraged domestic chip development, and may prefer home grown technology over U.S. imports.
Some argue that the 25% surcharge might raise chip prices or limit sales volumes. Which could dampen the potential economic gains from this deal. The decision may ease tensions around technology trade coming after a period of heavy restrictions. And could reshape competition in global AI hardware. It signals a new strategy, instead of outright bans. Export controls may now favor regulated, fee based access maybe a model for future U.S. and China semiconductor trade.
For the tech world, companies in China might get better hardware access. But at the same time, this could even stronger efforts by China to build its own domestic chip industry.