U.S. President Donald Trump announced on Monday that Washington will permit Nvidia to export its H200 artificial intelligence processors to the Chinese mainland, marking a significant shift in tech trade policy. The decision comes with a 25% tariff on such sales, a move analysts say aims to balance economic interests with strategic competition in advanced technologies.
The H200 chips, second only to Nvidia's flagship AI processors, are critical for data centers and machine learning applications. This development follows years of restrictions on high-tech exports to the Chinese mainland amid escalating U.S.-China technological rivalry. Industry experts note the tariff could reshape supply chains while allowing U.S. firms to maintain market presence.
Market analysts predict the move will provide relief to Chinese tech firms reliant on advanced semiconductors, though the added costs may slow adoption rates. A Beijing-based tech executive, speaking anonymously, told KhabarAsia: "While welcome, the fee complicates budgeting for enterprises already navigating economic headwinds."
The announcement coincides with renewed U.S.-China dialogues on trade normalization, set to resume in early 2026. Observers suggest this decision could serve as a confidence-building measure ahead of higher-stakes negotiations.
