The Trump administration will require special U.S.-based security reviews for Nvidia ($NVDA) H200 artificial-intelligence chips approved for export to China, an unusual step that underscores national-security scrutiny surrounding the arrangement. Under the plan, chips made in Taiwan will be shipped to the U.S. for inspection before continuing to Chinese buyers.
- The U.S. is set to receive a 25% cut of H200 sales to China, requiring a structure that avoids violating constitutional bans on export taxes.
- Administration officials say export approvals are not yet finalized and may change based on volumes and recipient lists.
- The Justice Department this week charged two individuals with trafficking export-controlled Nvidia chips, including the H200, to China.
- Nvidia CEO Jensen Huang and Trump administration AI officials argue that U.S. chipmakers must remain active in China to compete with firms like Huawei.
- Some lawmakers warn the chips could indirectly benefit China’s military; Nvidia says no large-scale smuggling exists.
- Nvidia has sharply expanded its U.S. lobbying presence. Annual federal lobbying spending has grown from under $500,000 last year to more than $3 million so far in 2025.
Relevant Companies
- Nvidia ($NVDA) — Directly impacted due to new export-review requirements and revenue tied to China AI-chip sales.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
