In a landmark policy shift, the Trump administration has granted approval for the export of Nvidia’s advanced H200 artificial intelligence chips to China. The decision marks a significant turning point in the ongoing tech rivalry between Washington and Beijing, establishing a new framework for high-end semiconductor trade.
Under the new regulations, all Nvidia H200 chips destined for the Chinese market must undergo rigorous technical verification by an independent third-party laboratory. This process ensures the chips meet specific performance thresholds before they are cleared for shipment to the world's second-largest economy.
Strict Export Quotas and Security Measures The policy introduces several stringent conditions to balance commercial interests with national security. Exports to China are now capped at 50% of the total volume sold to U.S.-based customers. Furthermore, Nvidia is required to certify that domestic supply remains sufficient to meet American demand before fulfilling international orders.
Chinese customers must provide proof of "adequate security measures" to prevent the repurposing of these chips for military applications. To further regulate the trade, the U.S. government will levy a 25% fee on all sales of the H200 model to China.
A Strategic Reversal The move follows a period of comprehensive bans on Nvidia’s advanced processors, including the H20 model, which reportedly cost the company over $5.5 billion in lost revenue. The H200 chip is currently Nvidia's second-most powerful processor, boasting performance six times greater than its predecessor, the H20.
Major Chinese tech giants, including Alibaba and ByteDance, have already expressed significant interest, with reports indicating orders exceeding 200,000 units each.
China’s Domestic Push Continues Despite the partial lifting of the ban, the geopolitical environment remains tense. China’s internet regulators have recently advised domestic tech firms to reduce their reliance on American hardware. In response to previous restrictions, Chinese companies like Huawei and Cambricon have ramped up production of home-grown AI processors, such as the Ascend 910C.
While domestic Chinese chips currently trail Nvidia in large-scale AI training performance, Beijing continues to invest heavily in self-sufficiency, including efforts to develop domestic lithography machines to rival industry leaders like ASML.
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