U.S. Eases Tech Export: Nvidia's H200 Chip Heads to China

The U.S. Commerce Department potentially allowing Nvidia's H200 chip exports to China marks a shift in international trade relations. This decision, possibly part of easing tensions between the U.S. and China, raises concerns about the strategic implications of advanced AI technology enhancing China's military capabilities.

The U.S. Commerce Department is considering allowing Nvidia's H200 chip to be exported to China, according to sources close to the discussions. This decision led to a 2.2% rise in Nvidia shares after initial reports from Semafor.

This potential move signals a more diplomatic approach towards China, following recent trade negotiations between former U.S. President Donald Trump and China's Xi Jinping in South Korea. The compromise involves balancing the withholding of Nvidia's latest chips and preventing a complete halt on U.S. chip exports to China, which might otherwise boost Huawei's semiconductor capabilities.

The decision faces criticism from Washington, where concerns persist about enhancing China's military power. The H200 chip, revealed two years ago with significant performance upgrades, could facilitate China in building AI supercomputers akin to those in the U.S. Despite fears, previous bans on chip exports to China have been reversed, indicating a fluctuating stance in the tech trade policies under the Trump administration.