The Trump administration has approved exports of Nvidia’s H200 artificial intelligence chips to China, enabling shipments under a new regulatory framework.
The policy requires third-party testing to verify the chips’ technical capabilities before they can be shipped to Chinese customers.
China will be limited to receiving no more than 50% of the H200 chips sold to US buyers under the new rules.
Nvidia must confirm there is adequate domestic supply of H200 chips before fulfilling China-bound orders.
Chinese buyers are required to show sufficient security measures and pledge that the chips will not be used for military purposes.
President Donald Trump said last month the US would permit the sales while imposing a 25% fee on exports to China.
Lawmakers and China hawks in Washington criticised the move, warning it could strengthen Beijing’s military capabilities and weaken US leadership in AI.
The Biden administration had previously blocked sales of advanced AI chips to China over similar national security concerns.
The Trump administration argues that allowing sales will deter Chinese firms such as Huawei from accelerating efforts to rival Nvidia and AMD chip designs.