By Karen Freifeld,Alexandra Alper
Publication Date: 2025-12-09 16:59:00
Dec 9 (Reuters) – China hardliners and Democratic lawmakers slammed the Trump administration for its decision to allow Nvidia (NVDA.O) to ship its second-most advanced AI chip to China, citing concerns that Beijing could harness the technology to supercharge its military and ultimately bankrupt and replace Nvidia.
Republican President Donald Trump announced the move to allow H200 sales to China in a social media post on Monday, adding that the U.S. would collect a 25% fee on such sales, and that AMD (AMD.O) and Intel (INTC.O) would receive approval to sell similar chips there.
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The decision “puts our competitive edge up for sale, all for a 25% cut of chip exports,” said Brad Carson, a former Under Secretary of the Army. “When China starts supplying their military with AI built on U.S. chips, the world will regret this decision.”
The White House, the Commerce Department and the Chinese embassy in Washington did not immediately respond to requests for comment.
The move is the most dramatic example yet of Trump’s new push toward relaxing restrictions on sales of advanced American AI technology to China, as he seeks expanded overseas markets for U.S. companies. He also faces Beijing’s imposition of export controls on rare earth…
