President Donald Trump on Monday announced that he has “informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China and other Countries” and that “$25% will be paid to the United States of America.”
The change in policy is stark, relenting on a long-held U.S. position of denying China access to cutting edge American semiconductor technology.
Trump also said he will issue an executive order this week to curb state laws on artificial intelligence.
The POTUS wrote on social media: “There must be only One Rulebook if we are going to continue to lead in AI. We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS. THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY!”
Many Americans are voicing their objection to Trump’s “One Rule Executive Order” but Senator Ted Cruz (R-TZ) defended it. (Notably, the section in Trump’s signature One Big Beautiful Bill Act that limited state regulation of AI caused Rep. Marjorie Taylor Greene (R-GA) to regret voting for it.)
Those disagreeing with President Trump on a nationwide approach to AI would cede ground to China.
— Senator Ted Cruz (@SenTedCruz) December 9, 2025
If China wins the AI race, the world risks an order built on surveillance and coercion. The President is exactly right that the U.S. must lead in AI and cannot allow blue state… https://t.co/31BZIchyfH
Cruz wrote: “Those disagreeing with President Trump on a nationwide approach to AI would cede ground to China. If China wins the AI race, the world risks an order built on surveillance and coercion. The President is exactly right that the U.S. must lead in AI and cannot allow blue state regulation to choke innovation and stifle free speech.”
Brendan Steinhauser of Austin, Texas, CEO of The Alliance for Secure AI, replied to Cruz: “Senator, with respect, we cannot beat China by selling them our advanced chips. Would love to see you speak out against that particular policy.”
Democratic political pundit and social media influencer Brian Tyler Cohen had more choice words for Cruz for ignoring what he characterized as the more significant AI news from the White House. He told Cruz: “Trump literally just sold Nvidia’s most powerful chip out to China. Maybe sit this one out.”
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