Will Trump allow NVIDIA to sell flagship chips to China?
What's the story
US President Donald Trump is considering whether to permit NVIDIA Corp. to export advanced AI chips to China. The ultimate decision rests with Trump, US Commerce Secretary Howard Lutnick said Monday. Lutnick added that the president is seeking advice from "many different advisers" and has a strong understanding of Chinese President Xi Jinping.
Chip controversy
The H200 chip and its implications
Bloomberg News had reported on Friday that US officials are in the early stages of discussing whether NVIDIA can sell its H200 AI chips to China. Allowing such sales would be a major departure from restrictions first imposed in 2022, which were aimed at keeping Beijing and its military away from the most advanced US technologies. The move is likely to face strong opposition from national-security hawks in Washington.
Security concerns
Balancing economic growth and national security
Lutnick emphasized the dilemma between promoting economic growth and protecting national security. He posed the question: "Do you want to sell China some chips and keep them using our tech and tech stack, or do you say to them, 'Look, we're not going to sell you our best chips?'" This decision is further complicated by NVIDIA's CEO Jensen Huang's desire to resume sales in China.
Market dynamics
NVIDIA CEO's relationship with Trump and market challenges
Huang, who has a close rapport with Trump and often speaks to him, is keen on selling his products in China. However, the company remains barred from the Chinese AI chip market after Beijing ordered local firms not to buy the less-advanced H20 chips that were approved for sale by Trump earlier this year.
Sales strategy
Huang's case for selling to China
Lutnick said Huang has "good reasons" for wanting to sell to China and that an "enormous number of other people" agree it should be considered. He added, "It's a really interesting question." The final decision on this complex issue lies with Trump, who has all the information and is being advised by many experts.