Washington DC - President Donald Trump said Monday he had reached an agreement with Chinese President Xi Jinping to allow US tech giant Nvidia to export advanced AI chips to China.

The announcement marks a significant shift in US export policy for advanced AI chips, which Joe Biden's administration had heavily restricted over national security concerns about Chinese military applications.

In a Truth Social post, Trump said he informed Xi that Nvidia has permission to ship its H200 products to "approved customers in China, and other countries, under conditions that allow for continued strong National Security."

"President Xi responded positively! $25% will be paid to the United States of America," Trump wrote, without providing further details on how the payment mechanism would work.

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Trump criticized Biden's approach, saying it "forced our Great Companies to spend BILLIONS OF DOLLARS building 'degraded' products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker."

This referred to the previous administration's requirement for chip companies to create modified, less powerful versions specifically for the Chinese market.

These chips had reduced capabilities, such as lower processing speeds, to comply with export control regulations.

Trump said his decision aims to "support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers."

Trump emphasized that Nvidia's most advanced chips – the Blackwell series and forthcoming Rubin processors – are not included in the agreement and remain available only to US customers.

Under Biden-era restrictions, the H200 and similar advanced chips were blocked from export to China. First released in the second quarter of 2024, they are roughly 18 months behind the company's state-of-the-art offerings.

The chips are used to train the AI models that are the bedrock of the scramble over generative AI.

The Commerce Department is finalizing implementation details, with Trump saying "the same approach will apply to AMD, Intel, and other GREAT American Companies."