US Clears Nvidia to Sell Advanced H200 Chips to China

The US has approved Nvidia’s H200 chip sales to China, reshaping the global AI chip race and US-China tech relations amid security concerns.

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Jan 14, 2026 - 06:48

US Clears Nvidia to Sell Advanced H200 Chips to China

The U.S. government has granted permission to the major chipmaker Nvidia to sell its advanced artificial intelligence (AI) processors in China, the Commerce Department announced on Tuesday.

Nvidia's second-most advanced semiconductor, the H200, had been restricted by Washington due to concerns that it would give China's technology industry and military an advantage over the U.S.

The Commerce Department said the chips could be shipped to China, provided there is sufficient supply of the processors in the United States.

President Donald Trump said last month that he would allow the sale of the chips to "approved customers" in China and would impose a 25% fee.

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The Commerce Department's Bureau of Industry and Security said its revised export policy applies to Nvidia's H200 chips, as well as less advanced processors.

The H200 chip is one generation behind Nvidia's Blackwell processor, considered the world's most advanced AI semiconductor, which remains banned from sale in China.

Nvidia has been caught in the geopolitical tug-of-war between the U.S. and China—the two sides of the global AI race.

Trump lifted the ban on chip sales last July but demanded that Nvidia give a portion of its earnings from China to the U.S. government.

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Beijing then reportedly ordered its tech companies to boycott Nvidia's China-bound chips and prioritize domestically produced semiconductors. This move was intended to bolster China's tech industry, although experts have consistently stated that the country's chips still lag behind those of the U.S.

Throughout 2025, Nvidia CEO Jensen Huang has consistently lobbied Washington to allow the company's high-powered chips to be sold in China, arguing that access to the global market is essential for U.S. competitiveness.

However, some officials in the U.S. have expressed concerns that these chips would benefit Beijing's military and undermine U.S. progress in AI development.

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