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President Donald Trump granted Nvidia Corp. permission to ship its H200 artificial intelligence chip to China in exchange for a 25% surcharge, a move that lets the world’s most valuable company potentially regain billions of dollars in lost business from a key global market. Bloomberg's Caroline Hyde reports. Donald Trump’s decision to allow Nvidia Corp. to sell advanced chips to China marks more than just a shift in US tech policy. It also raises questions about how far he’ll go to steady ties with Xi Jinping. The Republican leader granted America’s most-valuable company permission on Tuesday to export its high-end H200 chip to China, watering down years of US national security safeguards. While he pledged Nvidia’s top products would remain off bounds, the move gives China access to semiconductors at least a generation ahead of its best technology. Justifying that decision, Trump vowed to simultaneously “protect National Security, create American Jobs, and keep America’s lead in AI.” That philosophy echoed Nvidia chief Jensen Huang’s claims that depriving Beijing of US chips only helps Chinese firms such as Huawei Technologies Co. catch up, and calls from within Trump’s own cabinet to get China “addicted” to American tech. It’s the latest example of Trump putting national security controls once deemed off limits in trade talks on the negotiating table with China. That reversal will test how the US president handles other contentious issues such as Chinese investment into the US and even America’s position on Taiwan, as Beijing ramps up pressure on the self-ruled democracy it claims as its own. “Trump’s H200 decision is unconscionable if your frame of reference is great power competition and you view AI superiority as the measure of dominance in the 21st century,” said Ryan Hass, a former US diplomat and senior fellow at the Brookings Institution. Trump appears more focused on maximizing opportunities for American businesses, while avoiding conflicts with China, he added. It remains to be seen whether Beijing will accept the H200 or push for the more powerful Blackwell. When Trump previously eased restrictions on the less advanced H20 chip, authorities in Beijing summoned Nvidia to discuss alleged security risks — signaling to domestic importers that they should steer clear. The Financial Times, citing two people familiar with the matter who weren’t identified, reported that regulators in Beijing are considering ways to allow limited access to the H200, with buyers perhaps subjected to an approval process to explain why their needs weren’t met by domestic producers. So far, Trump has claimed Xi responded “favorably” when informed about the move — though they haven’t publicly spoken since last month. Chinese Foreign Ministry spokesman Guo Jiakun only said the US and China should achieve “mutual benefits through cooperation” when asked at a regular briefing about the latest development. China has challenged America’s chip curbs this year with its own export controls on rare earths, a move that temporarily paralyzed some US factories and forced Trump to slash tariffs. An October deal struck at a summit in South Korea sealed a fragile truce, with US officials announcing the two leaders will meet four times in 2026 as they seek to avoid further tensions. The details around China’s latest rare earth licenses are still being hammered out, while Beijing has yet to meet its pledged purchases of US agricultural goods, giving Trump incentive to keep Xi on side. China is expected to use that leverage to seek concessions from Trump on Taiwan when he visits Beijing in April, said Wu Xinbo, who has advised the Chinese Foreign Ministry. A statement saying Washington doesn’t support Taiwan independence and a commitment to curtail arms sales to Taipei would be high on the list of demands, he added. “Trump is betting on next year’s Nobel Peace Prize nomination and he is now doing everything to prepare for that,” said Wu, who is director at Fudan University’s Center for American Studies in Shanghai. “Taiwan is a big deal in that case.” -------- Get more on The Bloomberg Intelligence Podcast On Apple: http://bit.ly/3YrBfOi On Spotify: http://bit.ly/3SPPZ8F Anywhere: http://bit.ly/43hOc0r Follow us on X: / bloombergradio Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: / bloombergpodcasts Bloomberg Television: / @markets Bloomberg Originals: / bloomberg Quicktake: / @bloombergquicktake