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    Trump Allows Nvidia H200 AI Chip Sales To China With 25% Cut, Says Xi 'Responded Positively'

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    President Donald Trump said on Monday that Nvidia will be permitted to ship its H200 artificial intelligence chips to “approved customers” in China and other markets, on the condition that the United States receives a 25 per cent cut of the revenue.

    In a post on Truth Social, Trump said Chinese President Xi Jinping had “responded positively” to the proposal.

    “The policy will support American Jobs, strengthen US Manufacturing, and benefit American Taxpayers,” Trump wrote.

    He further added, “The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies.”

    China’s Response So Far

    Nvidia and rival chipmaker AMD or Advanced Micro Devices, had already agreed in August to share 15 per cent of the revenue from China chip sales with the US government.

    Around the same period, China reportedly warned companies against using Nvidia’s H20 AI chip, which had been designed specifically for the Chinese market.

    The H200 chip is more advanced than the H20, but is not Nvidia’s highest-end product.

    Market Reaction And Company Response

    Nvidia shares rose earlier on Monday after reports that the Commerce Department was preparing to approve the China sales, but later trimmed those gains. The stock rose about 2 per cent in after-hours trading.

    In a statement to CNBC, an Nvidia spokesperson welcomed the decision.

    “We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America,” the spokesman said.

    “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” the statement added.

    Chips At The Centre Of US–China Technology Race

    Semiconductors, which are critical components in almost every category of electronic devices, are central to the intensifying AI competition between the US and China.

    They have also become a key flashpoint in the wider trade relationship between the two countries.

    Following Beijing’s export controls on rare-earth minerals, which are used in the production of certain high-end chips, the Trump administration threatened major tariff increases on US imports from China.

    Trade Truce And Prior Talks Between Trump And Xi

    After meeting in South Korea in late October, Trump and Xi reached a tentative trade truce under which China committed to end “retaliation” against US chipmakers, according to the White House.

    Trump said after that meeting that he had discussed the export of Nvidia chips with Xi.

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