Trump Authorizes Nvidia H200 Exports to China, Sparking Bipartisan Security Alarm

President Donald Trump has authorized U.S. chipmaker Nvidia to sell its H200 artificial-intelligence processors to vetted commercial customers in China, saying the arrangement includes a provision that 25% of sales proceeds "will be paid to the United States of America." The move touched off immediate bipartisan concern in Washington over whether the export controls include sufficient safeguards to prevent Beijing from using the technology to bolster military, surveillance and commercial AI capabilities.

What the White House and Nvidia Say

Trump announced the decision on his platform TruthSocial, saying approved customers will be vetted by the Commerce Department and that the deal preserves "strong National Security." Nvidia Chief Executive Jensen Huang had lobbied for permission to export higher-end chips to China; the company praised the announcement, arguing vetted commercial sales help the U.S. chip industry remain competitive and support high-paying American jobs and domestic manufacturing.

How Powerful Is the H200?

The H200 is described as Nvidia’s second-tier AI accelerator, roughly ten times slower than the company’s top Blackwell processor, which Trump did not authorize for export. Still, multiple lawmakers and national-security experts say the H200 is substantially more capable than China’s domestic chips and could materially narrow the U.S. lead in compute power for AI.

Bipartisan Political Backlash

Criticism came from both parties. Republican Rep. John Moolenaar, chair of the House Select Committee on Competition with China, warned on the committee’s X account that "The CCP will use these highly advanced chips to strengthen its military capabilities and totalitarian surveillance." Senator Josh Hawley (R-Mo.) echoed skeptical concerns and said he wants to see the specific security precautions the White House claims are in place.

"China will rip off its technology, mass produce it themselves, and seek to end Nvidia as a competitor," Rep. Moolenaar said.

On the Democratic side, Rep. Gregory Meeks called the decision a threat to national security, while Rep. Raja Krishnamoorthi urged stronger guardrails and more domestic capacity building. A bipartisan group of Senate Democrats warned the chips could give China’s military "transformational technology" for more lethal weapons, cyberattacks and industrial upgrades.

Legislative And Expert Responses

Sen. Pete Ricketts (R-Neb.) introduced the bipartisan Secure And Feasible Exports (SAFE) Chips Act, which would freeze current export limits on advanced chips for 30 months before a reassessment. Ricketts said the bill does not revoke existing licenses but gives the Commerce Secretary authority to review exports once the freeze lapses.

Policy experts also weighed in. Rush Doshi, a former National Security Council official, warned that compute power is a core U.S. advantage and that loosening controls could be "possibly decisive in the AI race." The Financial Times reported Beijing may move to limit domestic access to H200 chips, even as Trump said he had informed President Xi Jinping, who he said reacted positively.

What Remains Unclear

Key details remain unresolved: the exact criteria for "approved customers," the technical and verification safeguards that would prevent diversion to military or surveillance programs, and how the claimed 25% payment to the U.S. would be implemented and enforced. Lawmakers from both parties have demanded more transparency and verifiable protections before they will endorse the decision.

Bottom line: The administration frames the move as a calibrated effort to balance national security and U.S. competitiveness. Critics argue it risks accelerating China’s AI and military capabilities unless robust, verifiable safeguards are made public and enforced.