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Washington, December 9, 2025 – In a stunning U-turn on U.S.-China tech policy, President Donald Trump announced late Monday that Nvidia will immediately be allowed to export its advanced H200 AI accelerators to pre-approved commercial customers in China, ending a multi-year Biden-era export ban.
The deal comes with an unprecedented conditions: every H200 chip sold to China will carry a 25% revenue surcharge paid directly to the U.S. Treasury – a jump from the 15% initially discussed with Nvidia and AMD.
“This is the biggest America First technology deal in history,” Trump posted on Truth Social. “Billions of dollars coming back to American taxpayers while keeping China hooked on OUR chips. Win-Win!”
Key Details of the Trump-Nvidia-China Agreement
- Nvidia H200 (second only to Blackwell series) now cleared for export to vetted Chinese buyers
- 25% of all China-bound H200 revenue goes straight to U.S. government (est. $4–7 billion annually at scale)
- Similar terms extended to AMD (MI300 series) and Intel (Gaudi 3)
- U.S. Commerce Department retains final approval over end customers
- No military or government-linked entities eligible
Nvidia shares surged more than 4% in pre-market trading Tuesday, adding over $120 billion to the company’s market cap in hours.
Why This Matters for the Global AI Race
The H200 is roughly 6× more powerful than the watered-down H20 chip China was previously allowed to buy. Industry analysts say lifting the ban could:
- Restore ~$15–20 billion in annual revenue Nvidia lost since 2023 restrictions
- Slow China’s push toward full self-sufficiency with Huawei Ascend and domestic alternatives
- Fund accelerated U.S. R&D for Blackwell Ultra and next-gen Rubin platforms
Critics, including Senate hawks from both parties, called the move “dangerous.” Senator Mark Warner (D-VA) warned: “Handing China our most advanced AI training hardware – even with a tax – risks supercharging their military modernization.”
Market & Industry Reaction
- Nvidia CEO Jensen Huang: “This balanced framework protects national security while letting American innovation lead the world.”
- AMD and Intel shares +3–5% on expectations of identical treatment
- Chinese tech giants (Baidu, Alibaba, ByteDance) reportedly preparing massive orders
- SMIC and Huawei shares fell sharply on fears of renewed U.S. tech dominance
The U.S. Commerce Department is expected to publish the final licensed-buyer list and enforcement rules within 72 hours.
With this single decision, President Trump has simultaneously handed Nvidia one of its biggest growth catalysts ever – and secured what could become the largest technology-derived revenue stream in U.S. history.
Stay tuned as the global semiconductor landscape shifts overnight.
Tags: Trump Nvidia deal, H200 China export, US AI chip policy 2025, Nvidia stock surge, US-China tech war, Blackwell vs H200, AI export controls lifted
