New Delhi, Dec. 9 -- The Trump administration's recent decision to permit Nvidia to export its advanced H200 artificial intelligence chips to China has triggered an unexpected diplomatic and economic collision, with Beijing signaling it will restrict access to the semiconductors despite Washington's approval. The move, announced in December, comes with a contentious condition requiring Nvidia to remit 25 percent of all revenue from Chinese sales to the United States Treasury, a stipulation that has drawn sharp criticism from technology policy experts and raised questions about the future of American semiconductor dominance in the world's second-largest economy.

The H200 represents Nvidia's most powerful AI accelerator currently in mass p...