WASHINGTON, December 8, 2025 – President Donald Trump announced Monday that Nvidia can resume sales of its H200 AI chips to approved commercial customers in China, contingent on the U.S. government receiving a 25% cut of the revenue—a measure extending to AMD, Intel, and other American chipmakers as part of a fragile trade detente with Beijing.
The policy follows a late-October meeting in South Korea between Trump and Chinese President Xi Jinping, where China pledged to end retaliatory actions against U.S. semiconductor firms.
Trump revealed in a Truth Social post that Xi had responded positively to the revenue-sharing idea during those talks.
“The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies,” Trump wrote, framing the move as a boost to jobs, manufacturing, and taxpayers.
Nvidia , hit by export restrictions since 2022 aimed at curbing China’s AI growth, hailed the development. A company spokesperson told CNBC: “We applaud President Trump’s decision to allow America’s chip industry to compete to support high-paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”
The H200, a step above the China-specific H20 but below Nvidia’s flagship models, will be limited to non-military buyers screened by the Commerce Department.
This builds on an August agreement where Nvidia and AMD committed 15% of China sales to the U.S., though Beijing had cautioned firms against using those chips.
Broader tensions persist: U.S. curbs on advanced tech have prompted China to restrict rare-earth exports vital for semiconductors, leading to threats of steeper tariffs.
Nvidia shares rose 2.34% to $189.90 in after-hours trading, reflecting market relief. The arrangement could inject billions into U.S. coffers while reopening a lucrative market, but critics fear it might inadvertently fuel China’s capabilities.
As the Commerce Department wraps up implementation, the policy tests the October truce’s staying power amid ongoing disputes over subsidies and intellectual property.
