Nvidia Under Review for Advanced AI Chip Sales to China
The initial shock of Trump's tariffs appears to have subsided as countries find new ways to maintain their export volumes. China is one country offering incentives to a wave of consumer brands to deepen their inroads into the American retail market and offset sluggish spending back home.
U.S. President Donald Trump’s administration has launched a review of the shipment of H200 AI chips that is supposed to leave for China. This marks the first shipment to China of the advanced H200 chips, making good on his pledge to allow controversial sales.
This month, Trump said he would allow sales of the advancedH200 chips to China, noting that the US government has a 25% revenue share. Moreover, this will keep U.S. firms ahead of Chinese chipmakers by reducing demand for Chinese chips.
This move drew severe criticism from China Hawks across the US political spectrum, citing concerns that the chip sale would supercharge China’s military and nullify the US advantage in Artificial Intelligence.
However, there are still some questions that need clarification. How long would it take for the U.S. government to review the sale, and would China even allow its firms to buy American chips, even if they are advanced?
That being said, one doesn’t have to dig too deep to know the answer. The US Commerce Department, which oversees exports, has sent a license application for review of the chip sales to departments such as State, Energy, and Defense (War). These departments have been asked to have their reports ready within the next 30 days.
According to Reuters, an administration official emphasized that the review will be very thorough and “not some perfunctory box we are checking." That being said, the final decision of the H200 AI chip sale rests with President Trump.
Regarding China buying US chips, Beijing has already said it will “limit access” to H200 chips. Why? Simply because China is developing its own range of advanced, fast AI chips that will change the game, and Beijing doesn’t want anything to hinder that development.
Share this article Latest News Categories More News