The Trump administration is considering greenlighting sales of Nvidia's H200 artificial intelligence chips to China, people familiar with the matter said, as a bilateral detente boosts prospects for exports of advanced U.S. technology to China.

The Commerce Department, which oversees U.S. export controls, is reviewing the policy of barring sales of such chips to China, the sources said, stressing that plans could change.

The White House and the Commerce Department did not immediately respond to requests for comment.

The possibility signals a friendlier approach to China, after U.S. President Donald Trump and Chinese leader Xi Jinping brokered a trade and tech war truce in Busan last month.

China hawks in Washington are concerned that shipments of more advanced AI chips to China could help Beijing supercharge its military, fears that prompted the Biden administration to set limits on such exports.