The United States will permit exports of Nvidia’s H200 AI chips to China, with a 25% fee collected on sales, President Donald Trump announced Monday.

The move aims to balance maintaining U.S. leadership in AI technology while addressing national security concerns over advanced chip transfers to China. Trump said the same approach will apply to other AI chipmakers, including AMD and Intel, reports Reuters.

The decision follows debate over whether restricting Nvidia and competitors from selling to China would help U.S. global dominance or spur Chinese self-reliance in AI. Nvidia shares rose 2% in after-hours trading following Trump’s announcement, with the U.S. Commerce Department finalizing details. Trump stated the arrangement includes security vetting before exports, and that the latest, faster Blackwell chips will not be part of the deal.

The H200 is nearly six times more powerful than the H20 chips previously allowed for export. Critics, including several Democratic senators and U.S. Representative John Moolenaar, warned that the decision could strengthen China’s military and industrial capabilities. They expressed concern that Chinese firms could copy or mass-produce the technology, undercutting U.S. firms.

Chinese regulators have previously cautioned domestic companies against using downgraded Nvidia chips like the H20 and L20. Analysts expect Beijing to gradually relax its stance toward Nvidia, while continuing long-term efforts to develop its own advanced AI chips. China’s domestic AI chip industry includes firms such as Huawei, Cambricon, and Moore Threads.

Nvidia welcomed the decision, calling it a balance between commercial interests and national security. The Trump administration sees the H200 export as a compromise, allowing sales to vetted commercial customers while protecting U.S. strategic interests and jobs in the AI sector.