(qlmbusinessnews.com . Tue 9th Dec, 2025) London, UK —
US-Chinese Tech Trade War Eases as Nvidia Gets Approval to Sell Advanced AI Chips
US President Donald Trump announces his decision to permit leading American AI chip manufacturer Nvidia to sell its sophisticated H200 chips to “approved customers” in China, signalling a significant policy shift.
In a statement on social media, President Trump emphasised the twin goals of safeguarding national security and fostering American job creation, while ensuring the United States maintains its forefront position in artificial intelligence technology.
This policy adjustment will extend to other prominent US chipmakers, including AMD, following intense advocacy efforts by Nvidia's CEO, Jensen Huang. Huang's recent visit to Washington aimed to gather support for the move has proven fruitful.
Nvidia, recognized as the pre-eminent chip company globally as well as the most valuable, has recently been caught in the crosshairs of a growing geopolitical standoff between the US and China. The firm was previously prohibited from selling its top-tier chips to Chinese entities.
The ban's reversal in July came with a stipulation from Trump that Nvidia remit 15% of its Chinese market revenues to the US government, a move that led to a reported directive from Beijing instructing its technology sectors to halt purchases of Nvidia's China-specific chips.
Nvidia responded positively to President Trump's announcement, praising the decision as beneficial for the American chip industry's ability to compete, thereby supporting high-value jobs and manufacturing within the United States.
Jensen Huang had expressed to the Reporters the necessity of global access to these advanced technologies, including for China, emphasising the tight race with China's burgeoning chip production capabilities.
With the Monday announcement, Nvidia welcomed the opportunity to offer the H200 chip to commercially approved customers, following vetting by the Department of Commerce, hailing it as a judicious compromise favourable for the United States.
Following the announcement, there was a slight uptick in Nvidia's stock value. President Trump hinted at a financial return from this arrangement, indicating a 25% revenue contribution to the United States, though clarity on this point is pending.
The White House has been approached for further details on this agreement, which is expected to encounter resistance from national security advocates within Congress.
Researchers from the Center for Security and Emerging Technology (CSET) at Georgetown University highlight the implications of such a move, pointing out that China’s military is leveraging US-designed advanced chips to enhance its AI military capabilities.
Cole McFaul, a senior research analyst at CSET, warns of the potential for easier access to high-quality AI chips to bolster China's ability to deploy AI systems for military purposes, aiming for a technological edge on the battlefield.
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