US Approval of Nvidia H200 AI Chip Exports to China Under Strict Controls
The United States government has authorized Nvidia to export its H200 AI accelerator chips to select Chinese customers, reversing previous restrictions that had barred such sales. The decision, announced by President Donald Trump, requires each chip to be routed through US territory for inspection and imposes a 25% import duty. The move is intended to maintain US technological superiority while allowing controlled access to advanced AI hardware, as the H200 is significantly more powerful than the previously permitted H20 model but still less advanced than Nvidia's latest Blackwell chips, which remain restricted. The policy shift follows concerns that strict export bans were accelerating the development of domestic Chinese alternatives, particularly from companies like Huawei, whose Ascend 910C and CloudMatrix 384 chips are approaching parity with Nvidia's offerings.
Chinese regulators have responded by convening emergency meetings with major technology firms such as Alibaba, ByteDance, and Tencent to assess demand for the H200 and consider potential import limits. The Chinese government is weighing whether to permit purchases and how to structure access, with discussions reportedly focusing on restricting public sector use and requiring justification for why domestic chips cannot meet company needs. The US administration's strategy aims to keep Chinese industry reliant on American technology and secure revenue for Nvidia, which has seen its China market share plummet due to earlier restrictions. The decision is seen as a calculated effort to balance national security concerns with economic interests and the ongoing competition in AI hardware development between the US and China.
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