US President Donald Trump has allowed the sale of Nvidia's H200 GPU to China.

Posting on Truth Social, Trump said that the US would allow Nvidia to sell H200s to “approved customers” in China and other countries under certain conditions, including a 25 percent export tax, adding that the government’s approach would apply to AMD, Intel, and “other GREAT American Companies.”

Chinese officials have since said in a press conference that they have "noticed" the reports regarding the sale of Nvidia H200s. While little information was offered by the government, Guo Jiakun, China's spokesperson for its Ministry of Foreign Affairs, said: "China always advocates that China and the United States achieve mutual benefit through cooperation."

Trump has been eager to commercialize the US’ chip export regime. In November, the US government also approved the sale of Nvidia chips to Saudi Arabia and the UAE in exchange for a series of investment commitments into America, and the President has previously toyed with the idea of loosening export restrictions in exchange for an export tax.

In August, both Nvidia and AMD agreed to pay the US government 15 percent of the revenue generated from the sale of H20 and MI380 chips respectively to China.

The H20 is a less powerful, export-compliant version of the H100 chip.

But the Chinese government responded in September by banning domestic technology companies from buying the H20s, stating that the chips were a national security threat.

There were concerns about Trump’s policy reversal at the time. A group of 20 national security experts and former government officials sent a separate letter to Commerce Secretary Howard Lutnick urging the Trump administration to reverse its decision, describing the H20 as “a potent accelerator of China’s frontier AI capabilities, not an outdated AI chip.”

Some commentators interpreted China’s ban as a bargaining tactic, arguing that the H20 was banned in order to force the US to offer better, more advanced chips.

Whether this is the case will depend on China. Trump’s Truth Social post states that “President Xi responded positively!” to the news, but an official Chinese response has not yet been issued.

The move is another major victory for Nvidia CEO Jensen Huang, who has been vocal about the company’s intention to regain market share in China.

Huang has lobbied hard against policies or measures that would restrict the sale of the company’s chips abroad.

Just last week, Huang’s efforts again bore fruit when it was reported that lawmakers would exclude the GAIN AI Act from the US’ annual defense policy bill.

The act would have required chipmakers like Nvidia to provide American businesses and persons priority in acquiring chips that would otherwise require an export license to be sent abroad, effectively limiting their ability to sell to non-American customers.

The policy reversal is also a victory for key Trump advisor and PayPal co-founder David Sacks, who has long argued that maintaining the US’ preeminence in AI would require the global proliferation of American-made AI infrastructure.

But Trump has stated that the company’s newer and more powerful Blackwell and Rubin chip architectures would not be included as part of the deal.