Trump Greenlights Nvidia's H200 Export to China Amid National Security Concerns

The U.S. has decided to permit the export of Nvidia's H200 AI chips to China, implemented with a 25% fee. While Nvidia's decision boosts its stock, concerns regarding national security and the enhancement of China's military capabilities are escalating. The arrangement aims to maintain a balance in global AI competitiveness.

The United States is set to allow Nvidia's H200 AI processors to be exported to China, President Donald Trump announced, imposing a 25% fee on such trades. The move, announced on Truth Social, marks a significant decision as it attempts to sustain America's lead in AI technology sectors.

Nvidia shares surged following the announcement, despite apprehension from both industry and government entities over the potential military empowerment of China. While tensions arise around national security, the decision underscores a compromise designed to preserve the competitivity of American AI firms internationally.

This decision comes with mixed sentiments across political lines, viewed as a necessary measure by some and a threat by others. Administration officials assure that these exports will happen under strict conditions ensuring national security, while critics warn against empowering China's military strength.

(With inputs from agencies.)