Nvidia (NVDA) Stock: Trump Approves H200 China Sales With 25% Government Surcharge

TLDR

• China is drafting rules to regulate how many advanced AI chips local companies can purchase from foreign suppliers like Nvidia, rather than banning them completely.
• Trump administration approved sales of Nvidia H200 chips to China with a 25% government surcharge on sales revenue.
• Chinese customs authorities reportedly told agents that H200 chips are not permitted to enter China this week.
• U.S. lawmakers criticized the decision, saying it weakens America’s AI advantage and could benefit Beijing’s military.
• Nvidia must certify sufficient U.S. supply and shipments to China are capped at 50% of total U.S. shipments under new Commerce Department rules.

The Trump administration greenlit Nvidia H200 chip sales to China on Tuesday. The catch? The U.S. government takes 25% of sales revenue.

But there’s a problem. Chinese customs authorities told agents this week that H200 chips cannot enter China, Reuters reported. This creates confusion just days after the formal approval.

The government will receive 25% of the dollar value from these sales. Trump first announced this arrangement a month ago.

NVIDIA Corporation, NVDA

The H200 differs from Nvidia’s previous China-targeted chip, the H20. The H200 is the same version sold in the U.S. and other markets. It wasn’t specifically slowed down for export.

Two newer Nvidia chip generations now exceed the H200’s performance. These are the Blackwell and Rubin AI chips currently in production.

New Rules and Requirements

The Commerce Department published requirements Tuesday. Exporters must certify sufficient H200 supply exists in the U.S. first.

The chips cannot use global foundry capacity needed for more advanced AI chips bound for America. Customers need proper security procedures in place.

Independent third-party testing in the U.S. must confirm chip specifications before shipping. China shipments are capped at 50% of total U.S. customer shipments.

The company argues this approach balances commercial interests with national security. “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance,” the spokesperson added.

Chinese Market Response

China is now working on its own regulations. The country plans rules limiting total volumes of cutting-edge AI chips local companies can buy, Nikkei Asia reported Thursday.

Two sources familiar with the matter confirmed China’s central government is developing these purchase limits. The rules would allow some foreign chip sales rather than outright bans.

The Chinese government summoned domestic tech companies this week. Sources told Reuters these companies were explicitly told not to purchase the chips unless necessary.

U.S. lawmakers questioned the approval Wednesday. They argue it erodes America’s AI edge and could benefit Beijing’s military capabilities.

Nvidia previously stated the Chinese market could be worth $50 billion annually. Whether China will actually approve imports remains unclear as the country pushes domestic AI chip development.

The White House also imposed a 25% tariff on imports of chips like the H200. These chips must be imported to the U.S. for testing before shipping to China.

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