# Nvidia’s Second-Best AI Chips Bound for China: US Shifts Focus from Security to Trade

- Link: https://www.thailand-business-news.com/china/278680-nvidias-second-best-ai-chips-bound-for-china-us-shifts-focus-from-security-to-trade
- Published: 2026-01-12T21:35:14+07:00
- Author: China Business Review

**President Trump approved Nvidia’s H200 AI chip exports to China, earning 25% of
revenue. These advanced chips drive AI systems, including autonomous weapons, amid
ongoing US-China trade tensions.**

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## Key Points

 * President Trump approved exports of Nvidia’s H200 AI chips to China, allowing
   the U.S. to receive 25% of the sales revenue. These chips, crucial for advanced
   AI systems, raise concerns amid ongoing trade tensions.
 * The H200 is Nvidia’s second-most powerful processor, significantly outperforming
   its predecessor. These chips are not consumer products but are used in autonomous
   weapons systems.
 * This decision comes amid a year of heightened U.S.-China trade tensions, making
   it surprising that sensitive technology exports were permitted.

In a notable shift in U.S. trade policy, President Donald Trump has approved the
export of Nvidia’s H200 artificial intelligence (AI) chips to China. This decision
rescinds earlier bans, allowing the powerful chips, which are integral to sophisticated
AI systems, to flow into the Chinese market. In return for facilitating these exports,
the U.S. government will receive 25% of Nvidia’s sales revenue from the transactions,
illustrating a unique approach wherein the administration captures a share of private-
sector profits.

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The H200 chip, which ranks as Nvidia’s second-most powerful AI processor, boasts
capabilities that exceed the previous H20 chips by approximately six times. These
advanced chips are not merely consumer products; they are essential components for
driving cutting-edge AI systems. The applications of these chips extend into military
domains, particularly concerning autonomous weapons. They underpin technologies 
such as drone navigation, automated gun emplacements, and sophisticated targeting
algorithms that are increasingly utilized in modern warfare scenarios.

The implications of this decision come against the backdrop of a prolonged and contentious
trade war between the United States and China. Throughout the year, tariffs imposed
by the U.S. on Chinese imports rose as high as 145%, illustrating the escalating
economic tensions. This newfound willingness to permit the export of such sensitive
technology raises eyebrows, especially considering that advanced AI capabilities
have been linked to crucial military applications. The current environment for AI
technologies showcases systems already being deployed actively in conflict zones,
such as Ukraine and Gaza, validating fears of militarized AI proliferation.

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This move marks a significant pivot from a security-first strategy to a more trade-
oriented policy, emphasizing the complex interplay of economic interests and national
security concerns in U.S.-China relations. As the landscape of international trade
continues to evolve, the ramifications of this export approval will likely reverberate
across various sectors, influencing both geopolitical dynamics and the future trajectory
of technological advancement.

**Read the original article :** [With Nvidia’s second-best AI chips headed for China, the US shifts priorities from security to trade – Thailand China Business News ](https://www.thailandchina.net/politics/128204-with-nvidias-second-best-ai-chips-headed-for-china-the-us-shifts-priorities-from-security-to-trade?rand=160085)