The U.S. government initiated a formal inter-agency review that could permit NVIDIA to export its powerful H200 artificial intelligence chips to China.

This review follows President Donald Trump’s earlier statements allowing the sales, provided the U.S. collects a 25% transaction fee. The Commerce Department circulated export license applications to the State, Energy, and Defense departments for a 30-day consultation period.

Supporters argue the potential policy change would help U.S. companies maintain a lead over Chinese rivals. They contend this reduces incentives for China’s domestic chip development.

However, China hawks in Washington criticize the prospect. They caution the technology could enhance Beijing’s military and AI capabilities. If the agencies cannot reach an agreement, the final decision rests with the President.