US launches review of Nvidia AI chip sales to China
The U.S. government has launched a review that could permit the first shipments of Nvidia’s (NVDA) second-most powerful AI chips to China, five sources said, fulfilling President Donald Trump’s pledge to allow the controversial sales, News.Az reports, citing Reuters.
Trump recently stated he would authorize sales of Nvidia’s H200 chips to China, with a 25% fee collected by the U.S. government. He argued the move would help U.S. companies maintain an edge over Chinese chipmakers by reducing demand for Chinese-made chips.
The announcement sparked criticism from China hawks across the U.S. political spectrum, who warned the chips could enhance Beijing’s military capabilities and undermine the U.S. advantage in artificial intelligence. Questions remain about how quickly the U.S. might approve the sales and whether China would permit its firms to purchase the Nvidia chips.
According to sources speaking anonymously due to the confidential process, the U.S. Commerce Department has sent license applications for the chip sales to the State, Energy, and Defense Departments for review.
Those agencies have 30 days to weigh in, according to export regulations.
One of the sources, an administration official, emphasized the review would be thorough and "not some perfunctory box we are checking."
But under the regulations, the final decision rests with Trump.
The start of the inter-agency licensing review has not been reported previously. The Commerce Department and Nvidia did not immediately respond to requests for comment.
A White House spokesperson did not comment on the review, but said "the Trump administration is committed to ensuring the dominance of the American tech stack – without compromising on national security.”
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