A White House move to let Nvidia sell advanced chips to China is blurring the line between national security and commercial gain.
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Moneycontrol10-12-2025, 14:17

Trump's controversial Nvidia H200 chip sales to China: Security vs. revenue

  • Trump's administration is allowing Nvidia to sell its advanced H200 accelerator chip to China, marking a significant shift from previous US tech export policies.
  • The decision is controversial, with critics arguing it helps China's AI development and undermines US technological advantage.
  • Trump stated 25% of sales revenue would go to the US government, framing export controls as a revenue opportunity, a move questioned by legal experts.
  • This policy change follows a failed attempt to sell a less powerful H20 chip to China, which Chinese buyers rejected.
  • Concerns exist that this move could undermine allied cooperation on export controls and erode the international system designed to limit China's access to sensitive technology.

Why It Matters: Selling advanced chips to China risks US tech dominance and global security alliances.

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