Trump Approves Nvidia H200 Chip Sales to China With 25% U.S. Revenue Cut

President Trump announced that Nvidia will be permitted to supply its H200 AI chips to approved buyers in China, provided that a quarter of the revenue flows back to the U.S. government. Trump said Xi Jinping gave a positive response to the plan, which he claims will support high-skill jobs and strengthen domestic manufacturing.

The new arrangement expands on an earlier agreement in which Nvidia and AMD committed to share 15% of China sales revenue. The H200 is more advanced than Nvidia’s H20 chip, which China previously discouraged local firms from using, although it still sits below Nvidia’s top-tier products.

Nvidia’s stock gained momentum early Monday on expectations of regulatory approval before moderating later in the day. The company publicly welcomed the decision, saying that providing H200 chips to vetted commercial customers maintains a competitive position for the U.S. semiconductor industry.

Semiconductors remain at the heart of the strategic rivalry between Washington and Beijing, shaping both the AI race and broader trade dynamics. China’s earlier export restrictions on rare earth minerals prompted tariff threats from the Trump administration, adding to tensions.

The policy comes after Trump and Xi reached a tentative trade truce in late October, during which China agreed to halt retaliation against U.S. chipmakers. Trump noted that he raised the issue of Nvidia’s exports directly with Xi during their meeting.