Washington (AFP) — President Donald Trump said Monday he had reached an agreement with President Xi Jinping to allow US chip giant Nvidia to export advanced artificial intelligence chips to China.

The announcement marked 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.

Democrats in Congress quickly dismissed the shift as a huge mistake that will help the Chinese military and economy.

In a post on his Truth Social platform, Trump said he had informed Xi that Washington would permit Nvidia 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 percent will be paid to the United States of America,” Trump wrote, without providing details on how the payment mechanism would work.

Trump criticized his predecessor’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 Biden administration’s requirement for chip companies to create modified, less powerful versions specifically for the Chinese market.

These chips had reduced capabilities — lower processing speeds, for example — to comply with export control regulations.

Chinese foreign ministry spokesperson Guo Jiakun did not directly confirm the agreement when asked, but said that “China has always advocated for mutual benefit and win-win outcomes through cooperation between China and the United States.”

Under Biden-era restrictions, the H200 and similar advanced chips were blocked from export to China.

“We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America,” an Nvidia spokesperson told AFP.

“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”