Catenaa, Tuesday, January 13, 2025- The Trump administration today approved exports of Nvidia’s H200 artificial intelligence chips to China under new conditions, easing restrictions while drawing criticism over national security risks, according to a news report.
The decision permits shipments of Nvidia’s second most powerful AI chip following review by a third-party testing lab to verify technical capabilities. Exports to China will be capped so they do not exceed half of the volume sold to US customers. Nvidia must also certify sufficient domestic supply before shipments proceed.
Chinese buyers will be required to demonstrate security safeguards and attest that the chips will not be used for military purposes.
These conditions were not previously in place and are intended to address concerns from lawmakers who warn advanced AI hardware could enhance China’s military capacity.
Administration officials described the policy as a balanced approach that maintains oversight while allowing US companies to compete globally.
Critics argue the rules may be difficult to enforce and risk accelerating China’s AI development despite existing controls.
Chinese technology firms have already placed orders exceeding two million H200 chips, far above current inventory levels, highlighting strong demand.
Nvidia has said it is increasing production as global demand tightens supply and raises prices in cloud computing markets.
The move marks a shift from earlier policies that broadly blocked sales of advanced AI chips to China.
Supporters within the administration contend limited exports reduce incentives for Chinese firms to accelerate domestic alternatives, while opponents remain skeptical that safeguards will prevent misuse once the chips enter the country.
