Trump Approves Nvidia Chip Sales to China Under Strict Guidelines
President Trump announced on December 8, 2025, that California-based Nvidia will be allowed to sell its advanced H200 computer chips to “approved customers” in China. This decision, which the president described in a post on Truth Social, is expected to provide a significant boost to the semiconductor giant, renowned for its chips that play a crucial role in artificial intelligence applications.
U.S. Involvement in Sales
The United States government will take a 25% cut from the sales of these chips to China, as outlined by the president. However, the deal explicitly excludes Nvidia’s advanced Blackwell system and the upcoming Rubin system. Trump noted that he informed Chinese President Xi Jinping of the decision, to which the Chinese leader reportedly responded positively. The sales will proceed under “conditions that allow for continued strong National Security,” according to Trump.
Coordination with the Department of Commerce
Details of the agreement are currently being finalized by the U.S. Department of Commerce. Trump indicated that similar arrangements could extend to other U.S.-based chip manufacturers, including AMD and Intel.
Nvidia’s Market Significance
A spokesman for Nvidia praised the president’s decision, suggesting that it “strikes a thoughtful balance that is great for America.” Nvidia has experienced unprecedented success in recent years, rising to become the United States’ most valuable publicly traded company, with a market capitalization reaching approximately $4.5 trillion as of this announcement.
Background and Context
Historically, both the Biden and Trump administrations have imposed restrictions on the export of advanced chip technologies to specific Chinese entities, raising concerns that these technologies could be utilized for military purposes or bolster China’s AI capabilities to the detriment of U.S. interests. Members of both political parties have generally supported such limitations to maintain national security and provide competitive advantages for the U.S. AI industry.
Nvidia has actively sought greater access to the Chinese market, with CEO Jensen Huang arguing that current export restrictions have inadvertently strengthened China’s domestic AI chip industry. Huang has held discussions with President Trump regarding these export controls, including a meeting as recent as last week.
Recent Developments in U.S. Chip Policy
In August, the Trump administration hinted at granting export lstartnses to Nvidia and AMD, with the government poised to take a 15% cut of revenue from any sales made to China. Additionally, there were plans for the U.S. government to acquire a 10% stake in Intel in exchange for federal grants aimed at bolstering semiconductor manufacturing within the country.
This recent policy shift marks a significant change in the U.S. approach to managing the balance between national security and economic interests in the semiconductor sector.
As the situation develops, stakeholders in the tech industry and beyond will be watching closely to see how this new framework will impact the landscape of artificial intelligence and semiconductor production.