In a major change of policy, the Trump administration has said it will allow the American technology company Nvidia to sell its advanced H200 artificial intelligence chips to approved customers in China. President Donald Trump personally informed Chinese President Xi Jinping of the decision. This action relaxes strict export controls that were previously put in place because of national security worries. The move has started a strong debate. Business groups support it for helping the American economy, but some politicians criticize it, saying it puts security at risk.
This situation is part of a larger technology competition between the US and China. The previous administration had strict rules because it worried that powerful AI could help China's military and surveillance systems. These rules stopped Nvidia from selling its best chips to China. This forced the company to create a less powerful version, called the H20, for the Chinese market. That model was also banned last April, showing how relations were getting worse. The new policy is a strategic shift, choosing economic cooperation and support for American industry over simply trying to limit China.
President Trump called the decision a win for the American economy. He said it would support jobs, manufacturing, and taxpayers. A notable and controversial part of the deal is a financial rule: 25% of the money from these chip sales must go to the U.S. Treasury. This is higher than a 15% charge in a past agreement. The Department of Commerce will manage the details, making sure chips are only sold to carefully checked companies under secure conditions. The policy will also include other major U.S. chip companies like Advanced Micro Devices and Intel.
The news was welcomed by financial markets, and Nvidia's stock price rose. The company said the policy found a good balance, keeping valuable jobs and manufacturing in the United States. However, there is significant political opposition. Several Democratic senators have expressed deep concern. They argue that providing such advanced technology could help China improve its surveillance, censorship, and military power. They believe this trades long-term security for short-term profit.
The long-term effects of this change are unclear. While it reduces trade tension now and creates income for Nvidia and the U.S. government, it changes the balance between economic competition and national security. Critics say it might weaken a joint effort with allies to limit China's access to key AI technology. As the new rules are put into practice, the world will be watching to see if this reduces tensions or becomes another conflict in the race for technological leadership.