The United States will once again export Nvidia’s H200 chips to China, reversing restrictions imposed since 2022. Donald Trump’s decision, made public the same day the Justice Department revealed an operation against the smuggling of these same chips – valued at more than $160 million – surprised American lawmakers and security analysts, but the decision may come too late.
The H200 represents the most advanced semiconductors available outside of military lines. It is the engine that powers artificial intelligence systems capable of processing immense volumes of data almost instantly.
Each of these chips is capable of performing billions of calculations per second and serves as the basis for language models, self-driving cars and defense applications, which is why their export to China was banned for a long time. The release of this product gives Beijing back access to the same type of technology that the United States has been trying to restrict since the administration of Joe Biden.
But the Chinese reaction was curious to say the least, receiving the announcement with calculated silence. It didn’t take long for White House artificial intelligence adviser David Sacks to declare that China would reject the U.S. chip because it preferred to strengthen its domestic industry — a clear sign of confidence from a country that has spent the past three years turning sanctions into momentum and building a strategy of technological sovereignty that mobilizes state capital and private enterprise.
Since Biden signed the Chip and Science Act into law, Beijing has invested billions of dollars to replace foreign suppliers. The Chinese SMIC, prevented from using the most modern lithography machines in the West, adapted old processes and managed to produce 5 nanometer chips, which was considered impossible in 2022.
This achievement represents more than a technical step. This is proof that the country has learned to innovate within the limits imposed. This microscopic compression increases performance without increasing physical size, making processors faster and more efficient. This is a breakthrough that redefines the standard of competitiveness in a sector where every nanometer counts.
At the same time, Huawei has consolidated the development of its own artificial intelligence processors and companies like CXMT have expanded the production of memories essential for training advanced models. Chinese industrial policy now seeks not only to rival that of the United States, but also to eliminate points of dependency that could be used as diplomatic pressure.
Trump believed that selling the H200 would guarantee an immediate profit and keep Chinese companies locked into the US ecosystem. The effect, however, appears to have been the opposite.
The release reinforced the perception that China no longer needs Washington’s permission to move forward. What the president touted as a trade victory may be remembered as the moment the United States realized it could no longer dictate the rules in this area like before.
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