The U.S. government has approved the sale of Nvidia’s advanced AI processors to China, with restrictions to ensure they are not used for military purposes. This decision is expected to support U.S. manufacturing and jobs, with President Trump allowing sales to vetted Chinese customers for a fee.

Beijing criticises the move, warning against politicising technology and trade. Chinese officials argue that restrictions disrupt global supply chains and undermine the interests of both countries. Despite the concerns, Chinese firms are likely to purchase the H200 chips while NVDA accepts lower margins to regain access to the market.

Nvidia’s CEO has lobbied for this policy shift to keep American companies competitive in global markets. Some U.S. officials remain cautious, fearing the chips could benefit China’s military and impact America’s progress in AI. Trump’s plan to take a portion of chip sales could set a precedent for future trade negotiations. NVDA currently trades at $182.83 on the NasdaqGS, down 1.6%.

Read more at Nasdaq: Washington Clears Nvidia To Resume AI Chip Sales To China Under New Export Rules