The United States has approved the sale of Nvidia\u2019s advanced artificial intelligence processors to China, the Department of Commerce confirmed on Tuesday, easing restrictions that had been imposed over national security concerns.<\/p>\n
The decision allows Nvidia to ship its H200 chip \u2014 the company\u2019s second-most-advanced AI semiconductor \u2014 to China, provided there is sufficient supply available in the US. The H200 had previously been restricted amid fears it could boost China\u2019s technological and military capabilities.<\/p>\n
President Donald Trump said last month that chip sales would be permitted to \u201capproved customers\u201d in China, with the US government collecting a 25 percent fee. Nvidia welcomed the move, with a company spokesperson telling the BBC it would support manufacturing and job creation in the United States.<\/p>\n
According to the Commerce Department\u2019s Bureau of Industry and Security, the revised export policy applies to Nvidia\u2019s H200 processors as well as less advanced chips. Chinese buyers must demonstrate \u201csufficient security procedures\u201d and are barred from using the chips for military purposes.<\/p>\n
The H200 is one generation behind Nvidia\u2019s Blackwell processor, currently regarded as the world\u2019s most advanced AI chip, which remains prohibited from sale to China.<\/p>\n
Reacting to the announcement, Chinese embassy spokesman Liu Pengyu said Beijing opposed the \u201cpoliticisation and weaponisation of tech and trade issues\u201d.<\/p>\n
\u201cWe oppose blocking and restricting China, which disrupts the stability of industrial and supply chains,\u201d he said. \u201cThis approach does not serve the common interests of both sides.\u201d<\/p>\n
Nvidia has found itself at the centre of intensifying US-China competition over artificial intelligence. Trump lifted earlier chip export restrictions last July but required Nvidia to hand over a share of its China-related earnings to the US government.<\/p>\n
In response, Beijing reportedly instructed domestic tech firms to boycott Nvidia\u2019s China-bound chips and prioritise locally produced semiconductors, a move aimed at strengthening China\u2019s domestic chip industry. Analysts, however, say Chinese-made chips still lag behind US technology.<\/p>\n
Throughout 2025, Nvidia CEO Jensen Huang lobbied US officials to allow sales of advanced chips to China, arguing that access to global markets is vital for maintaining US competitiveness. Some US officials remain concerned that the technology could bolster China\u2019s military capabilities and undermine America\u2019s AI leadership.<\/p>\n
Semiconductor analyst Austin Lyons said Chinese firms are likely eager to secure H200 chips, at least until domestic alternatives improve, while Nvidia stands to benefit from renewed China revenue even at lower margins due to the US government\u2019s cut.<\/p>\n
Marc Einstein of Counterpoint Research noted that Trump\u2019s proposal to take a share of Nvidia\u2019s China sales is unusual and could set a precedent in future trade and tariff negotiations.<\/p>\n
\u201cIt will be interesting to see if this tariff model expands to other sectors,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The United States has approved the sale of Nvidia\u2019s advanced artificial intelligence processors to China, the Department of Commerce confirmed on Tuesday, easing restrictions that had been imposed over national security concerns. The decision allows Nvidia to ship its H200 chip \u2014 the company\u2019s second-most-advanced AI semiconductor \u2014 to China, provided there is sufficient supply …<\/p>\n","protected":false},"author":2,"featured_media":50768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,19],"tags":[81],"class_list":["post-50767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-south-asia","category-tie-tech","tag-headline"],"yoast_head":"\n