The Trump administration is discreetly considering allowing Nvidia to sell its high-end H200 AI chips to Chinese companies, signaling a significant change in U.S. technology export policies.

According to reports, the Commerce Department is considering easing limitations that currently hinder the sale of advanced AI chips to China.

Nonetheless, officials emphasized that no conclusions have been reached so far and circumstances may alter.

The H200 chip is one of Nvidia's most powerful, offering more high bandwidth memory than the H100, and it is believed to be roughly twice as powerful as the H20 chip, which is currently the most advanced processor Nvidia can sell in China.

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Nvidia, whose market share in China has significantly dropped because of export limitations, asserts that the existing regulations are hindering its ability to compete in a market currently worth approximately $50 billion, with the potential to reach $200 billion by 2030. Should U.S. policy shift, it would represent a significant victory for CEO Jensen Huang, who has been advocating strongly for reduced restrictions.

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These talks occur mere weeks after President Trump and Chinese leader Xi Jinping established a trade and technology agreement in Busan, suggesting a potential easing in Washington's position on Beijing.

The news regarding this possible policy change has disrupted Asian markets, resulting in some volatile trading for Chinese chip manufacturers. Cambricon shares fell at first but rallied to end higher, whereas Hua Hong Semiconductor and SMIC experienced notable declines earlier before regaining some losses.

 

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Reports suggest that Nvidia's resurgence with the formidable H200 might reduce the need for domestically produced chips, despite China's significant investment in its semiconductor sector.

In Washington, however, the proposal is already encountering pushback from legislators concerned that supplying advanced chips to China might enhance its military and strategic capabilities.