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Trump admin lets Nvidia sell H200 chip to China with a 25% cut
The Trump administration will allow sales of Nvidia’s H200 AI chips to China, with the US government taking 25% of sales revenue, President Donald Trump said on December 14.
The H200 chip, part of Nvidia’s Hopper generation, is not specifically modified for export.
New US regulations require exporters to certify sufficient domestic supply and independent third-party testing of the chips in the US before export.
Shipments to China are limited to 50% of what is shipped to US customers, and buyers must meet certain security standards.
It remains uncertain if Chinese authorities will approve the import, as China seeks to advance its own AI chip industry.
The Department of Commerce filing also mentions AMD’s MI325X chip. Nvidia CEO Jensen Huang said last week that the company has resumed production of the H200 and is seeing strong interest from Chinese customers.
🔗 Source: CNBC
🧠 Food for thought
Implications, context, and why it matters.
Trump’s 25% revenue claim sets a precedent for a government take on tech sales
- Trump says the US government will take 25% of sales revenue from H200 exports, which has no precedent in modern semiconductor trade policy, nor does it appear in Bureau of Industry and Security (BIS) rules published so far 1.
- BIS rules published Tuesday require proof of adequate domestic supply and third-party testing, but they do not take a cut of commercial deals 1.
- If enforced this would shift policy from export limits to government taking revenue from private sales. It raises questions about legal authority, how money would be collected, and whether it would cover other restricted tech.
- A 50% shipment cap tied to US customer volumes sets an arbitrary ratio that could skew Nvidia production plans and pricing, which could make China sales uneconomic even with approvals 1.
Third-party testing rules create a market for compliance services
- Mandating independent third-party testing in the US before export creates near-term demand for accredited labs that can verify AI chip capabilities against regulatory specs 1.
- Testing firms plus certification bodies that set protocols for measuring technical AI capabilities, then document compliance, will collect fees on every China-bound shipment.
- Compliance software vendors can build automated tracking to help exporters prove the 50% domestic-to-China shipment ratio and keep current certification records required by BIS 1.
- Security standards for buyers create consulting work for firms that focus on dual-use technology (civilian and military applications) compliance with supply chain verification 1.
