Trump could allow China to import Nvidia H200 chips, despite national security concerns

The White House may soon allow Beijing to import Nvidia's H200 GPUs into the communist nation, sources told Reuters on Friday – despite US lawmakers' grave concerns for national security, prompting a renewed push to pass the CHIPS Act.

The possibility signals a friendlier approach to China, after US President Donald Trump and Chinese leader Xi Jinping brokered a truce in the trade and tech war while in Busan last month, the news outlet reported.

Nvidia's H200 GPU is considered one of the more advanced artificial intelligence chips on the market, currently making the “cutting-edge AI technology” subject to export restrictions under the US Export Control Reform Act (ECRA).

Washington insiders said the move is part of a “bilateral détente” aimed at easing tensions between China and the US, though it’s unclear what concessions China would offer the US in return.

The H200 and its sister chip, the less potent H100 (both part of the indictment), are high-performance GPUs widely used in data centers for AI and high-performance computing, Nvidia states.

Currently, the most advanced AI semiconductor chip China can import from Nvidia is the Nvidia H20, which is 2x less powerful than the H200.

Nvidia CEO Jensen Huang, who has had a solid relationship with Trump, indirectly commented on a reversal, saying that not allowing China to purchase more advanced chip products leaves a massive hole in the market for rapidly growing foreign competitors to fill.

Nvidia's Blackwell B200 and the Grace Blackwell GB200 Superchip, released in 2024, are the company’s most advanced AI chips and were not mentioned by the sources.

Putting national security at risk?

The timing of the news? Some may consider a bit ironic, considering:

1. The ECRA was passed during Trump’s last presidency in 2018.
2. The US Department of Justice yesterday announced the indictment of two American citizens and two Chinese nationals, all for attempting to export the exact same Nvidia chip, no less than a month ago, to China.

The four men face 50 years behind bars each for violating the ECRA, as well as on multiple counts of smuggling and money laundering as part of the scheme, which was all paid for by China.

What’s more, the court documents made clear that China is actively seeking cutting-edge US technology to support China’s strategic vision “to become the world leader in AI by 2030.”

The indictment also argues that China plans to use the AI technology to modernize the Chinese military, including in “the design and testing of weapons of mass destruction and advanced AI surveillance tools.”

Attorneys from the National Security Division Counterintelligence and Export Control Section are prosecuting the case.

Furthermore, it’s not just Trump's security brass warning of China’s ulterior motives, as limits on exports, such as the Nvidia H200 GPUs, were first placed on the restricted export list during the Biden administration.

The US Department of Commerce’s Bureau of Industry and Security (BIS), which oversees US export controls, is said to be reviewing the policy regarding China, “stressing that plans could change.”

Renewed push to pass CHIPS Act

Thursday’s indictment also prompted House Republican John Moolenaar, chair of the US House Select Committee on China, to urge the swift passage of the CHIP Security Act, introduced by the Congressman back in May.

“The DOJ’s latest indictment makes it clear: the CCP will stop at nothing to obtain advanced US AI chips,” the Committee said Friday on X.

“We cannot allow American innovation to fuel Beijing’s military ambitions. Congress must pass the bipartisan CHIP Security Act to track and stop diversion before it’s too late,” it said.

The DOJ’s latest indictment makes it clear: the CCP will stop at nothing to obtain advanced U.S. AI chips.

We cannot allow American innovation to fuel Beijing’s military ambitions. Congress must pass the bipartisan Chip Security Act to track and stop diversion before it’s too…

undefined Select Committee on China (@ChinaSelect) November 21, 2025

The bipartisan legislation, supported by 30 co-sponsors, would require AI chips to be outfitted with location trackers and mandate that chipmakers report and share information about potential diversion to prevent the technology from ending up in the wrong hands.

China says the proposed export restrictions is part of a US campaign to weaponize economic and trade issues, according to Reuters.

In June, Ukrainian Intelligence discovered that Nvidia chips were powering Russian AI killer drones, even though Nvidia is also subject to strict export controls on the sale of advanced technology to Russia.

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