The US Department of Commerce has eased export restrictions on Nvidia's H200 chip to China, allowing export applications to be considered case-by-case rather than presumed denied. This decision, following President Trump's earlier indication of allowing advanced chips to "approved customers" with a 25% government surcharge, aims to balance national security concerns with the need for American industry to compete. New conditions include third-party testing, ensuring sufficient US supply, limiting China to 50% of US market products, and enforcing "Know Your Customer" procedures to prevent unauthorized access. The updated regulation applies to the H200 and less advanced chips, but not Nvidia's more sophisticated Blackwell or Rubin models, and also affects rival firms like AMD. Nvidia has applauded the decision, stating it supports American jobs and manufacturing while striking a "thoughtful balance."