By Stephen Nellis, Karen Freifeld and Michael Martina

WASHINGTON, Dec 8 (Reuters) – The U.S. Commerce Department is prepared to allow Nvidia’s H200 chip to be exported to China, a person familiar with the matter told Reuters.

Nvidia shares rose 2%. Semafor first reported the development.

Allowing the shipments could signal a friendlier approach to China, after U.S. President Donald Trump and Chinese leader Xi Jinping brokered a truce in the two countries’ trade and tech war in Busan, South Korea, last month.

Administration officials consider the move a compromise between sending Nvidia’s latest Blackwell chips to China, which Trump has declined to allow, and sending China no U.S. chips at all, which officials believe would bolster Huawei’s efforts to sell AI chips in China, the person

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