The US government has officially approved Nvidia’s sale of its advanced artificial intelligence processors in China, according to a statement from the Department of Commerce. This decision marks a significant shift in the export policy concerning Nvidia’s H200 chips, which had previously faced restrictions due to worries about potential advantages for China’s technology sector and military capabilities.
Under the new guidelines, Nvidia is permitted to ship the H200, the company’s second-most advanced semiconductor, to China, provided there is an adequate supply of these processors available in the US market. The easing of restrictions aligns with comments made by President Donald Trump last month, where he indicated he would allow chip sales to “approved customers” in China while implementing a 25% fee on Nvidia’s earnings from these transactions.
The Commerce Department’s Bureau of Industry and Security clarified that this revised export policy also encompasses less advanced processors. However, it is important to note that the H200 chip remains a generation behind Nvidia’s cutting-edge Blackwell processor, which continues to be barred from being sold in China. The Blackwell chip represents the pinnacle of AI semiconductor technology and is a focal point in the ongoing global competition in artificial intelligence.
Nvidia has found itself entangled in a geopolitical struggle between the US and China, each vying for dominance in the AI sector. This complex relationship has seen various fluctuations in policy. Trump’s reversal of the chip-selling restrictions last July included the requirement for Nvidia to contribute a percentage of its earnings from any sales to China to the US government.
In response to these developments, reports have emerged suggesting that Beijing has encouraged its tech companies to avoid Nvidia’s products intended for China and to instead prioritize domestically produced semiconductors. Despite these efforts to strengthen China’s technology sector, experts assert that Chinese chip manufacturing capabilities still trail behind those of the US.
Throughout 2025, Nvidia CEO Jensen Huang has actively advocated for the sale of high-performance chips to China, asserting that tapping into global market excess is crucial for maintaining the US’s competitive edge. Despite this, there remain apprehensions among some US officials regarding the potential dual-use nature of such chips, which could bolster Beijing’s military strength and impede progress in American AI advancements.
