Trump Says China Has Not Approved NVDA H200 Chip Purchases Yet — 'They Want To Develop Their Own'

• Trump also said that he discussed guardrails for artificial intelligence technology with his Chinese counterpart, Xi Jinping.
• U.S. Trade Representative Jamieson Greer also noted that there were no talks between the two countries over chip export controls.
• Trump also deflected Xi’s questions about whether the U.S. would defend Taiwan in case China attacked it.

President Donald Trump on Friday said that China has not yet approved purchases of Nvidia Corp.’s (NVDA) H200 AI chips because it chose not to do so.

According to a Bloomberg report, President Trump told reporters aboard Air Force One that Nvidia’s H200 chips did come up during the two-day state visit to China.

He said that China hasn’t approved H200 purchases yet, “because they chose not to, they want to develop their own. But it did come up, and I think something could happen on that.”

Nvidia shares fell nearly 2% in Friday’s pre-market trade. NVDA was among the top trending tickers on Stocktwits at the time of writing.

Trump, Xi Discuss AI Guardrails

President Trump also said that he discussed guardrails for artificial intelligence technology with his Chinese counterpart, President Xi Jinping.

“We talked about possibly working together for guardrails. Standard guardrails that we talk about all the time,” he added.

China’s reluctance to approve purchases of the Nvidia H200 AI chips comes amid reports that the U.S. had allowed the AI bellwether to sell the chips to Chinese companies.

U.S. Trade Representative Jamieson Greer also noted that there were no talks between the two countries over chip export controls, according to a report by CNBC.

“As to whether the Chinese are going to buy [U.S. chips] or not, they’re making their own determinations. They’re very committed to domestic production, they often see U.S. high tech as a threat to them. If we’re ahead of the game on AI chips…sometimes they feel that can stop their own growth,” Greer said.

Trump Says He Doesn’t Talk About Defending Taiwan

Trump deflected Xi’s questions about whether the U.S. would defend Taiwan in case China attacked it.

“That question was asked to me today by President Xi. I said I don’t talk about that,” he said, according to a report by CNBC. He added that he is the only person who knows what the U.S. would do in this case, and that’s him.

This comes a day after Trump invited Xi to visit the White House in September this year.

Meanwhile, President Xi asked if the U.S. and China could work to avoid the “Thucydides Trap”, calling the relationship between the two countries the most important in the world.

Xi also warned that the U.S.-China relationship could be pushed into a dangerous place if the Taiwan issue was not handled well.

NVDA stock is up 26% year-to-date and 74% over the past 12 months. The S&P 500 ETF (SPY) is up 27% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 39%.

The Vanguard Total Stock Market Index Fund ETF (VTI) and the Vanguard S&P 500 ETF (VOO) are up 26% during this period.

Also See: Bill Ackman Reveals New Microsoft Stake — Compares MSFT Setup To Earlier GOOG, AMZN, META Bets

For updates and corrections, email newsroom[at]stocktwits[dot]com.