By JIANLI YANG Dec 19, 2025
China’s chip strategy is focused on self-reliance. The United States should reconsider its decision to allow Nvidia to export H200 chips and instead enact a total export ban.
US President Donald Trump’s recent announcement to permit Nvidia to export its high-end H200 chips to China has triggered another round of heated debate on its implications for national security as well as overall strategies of competing and winning the artificial intelligence (AI) race with China. The controversy is familiar and almost ritualistic. Supporters warn that restricting exports undermines American firms and accelerates China’s domestic substitution; critics argue that any relaxation strengthens China’s AI capabilities and erodes US technological leadership.
Yet what is striking about the debate is not its intensity, but its dated premises. The core assumption on both sides—that US export controls can meaningfully shape China’s strategic trajectory—has become increasingly detached from reality. The H200 decision matters at the margin, but the larger direction of China’s policy no longer hinges on whether Washington tightens or loosens restrictions. The debate persists, but the strategic ground beneath it has shifted.
The Irony After DeepSeek: From Condemning US Controls to Targeting Nvidia
The irony began earlier this year, not long after China’s “DeepSeek moment,” when Chinese AI developers publicly signaled growing confidence in their large-model capabilities. For years, Beijing had fiercely condemned US chip export controls, while Chinese companies and government actors actively sought Nvidia’s most advanced chips through every available channel. Yet almost simultaneously, China began moving in the opposite direction.
Beijing initiated actions that looked very much like an attempt to impose its own constraints on Nvidia, citing national security concerns and pursuing the company for alleged violations of China’s anti-monopoly law. Chinese regulators accused Nvidia of abusing market dominance and of failing to meet commitments tied to earlier acquisitions, opening the door to fines and regulatory pressure… [Continue Reading]
Source: https://nationalinterest.org/blog/techland/chinas-chip-war-strategy-is-fixed-heres-why-americas-should-be-too