US Approves Nvidia H200 AI Chip Sales to China
14th Jan. 2026
The Trump administration has formally approved the sale of Nvidia’s second most powerful artificial intelligence chip, known as the H200, to its Chinese customers. This approval marks a significant shift in the United States’ technology export stance. The decision was announced on Tuesday and is expected to unlock shipments of the advanced chips to China under newly defined conditions. Critics in Washington have warned that the move could strengthen Beijing’s military and technological capabilities.
Under the new rule, Nvidia must meet a series of requirements before exporting the chips. Most importantly, a third-party testing laboratory will review the H200 to verify its technical capabilities. At the same time, China will not be allowed to receive more than 50% of the total volume of H200 chips sold to American customers. In addition, Nvidia must certify that enough chips remain available for the U.S. market, while Chinese buyers must demonstrate “sufficient security procedures” and confirm that the chips will not be used for military purposes.
Although President Trump said last month that the sales would proceed “under conditions that allow for continued strong National Security”. The decision has already reignited debate in Washington. Trump also confirmed that the exports would come with a 25% fee payable to the U.S. government, although critics described this move as a highly transactional. Meanwhile, Nvidia and the Chinese embassy in the US did not immediately respond to the requests for comment.
Export Caps Introduced as US Clears Nvidia Chip Sales
While the administration argues that the export caps strike a balance between economic interests and national security, analysts have remained skeptical. Jay Goldberg, an equities analyst at Seaport Research, said that the restrictions appeared to be a compromise that could prove difficult to enforce in practice.
“As we have seen, Chinese companies have found ways to get access to those chips, and the U.S. government appears highly transactional in their approach to chip exports”, Goldberg said. “Put another way, this looks like a Band-Aid, a temporary attempt to cover the huge gap among the U.S. government’s export policy makers”, he concluded.
The concerns are amplified by the scale of Chinese demand. Last month, Reuters reported that Chinese technology firms have already placed orders for more than two million H200 chips at a price of about $27,000. This figure far exceeds Nvidia’s current inventory of roughly 700,000 units.
US Approval Sparks Concerns Over China’s AI Growth
At the Consumer Electronics Show in Las Vegas, Nvidia’s chief executive, Jensen Huang, said the company was ramping up production to meet strong global demand. However, critics argue that the shift in policy could significantly accelerate China’s AI development.
Saif Khan, a former National Security Council official under President Joe Biden has warned that the rule would substantially boost China’s computing power. “The rule would allow about two million advanced AI chips like the H200 to China, an amount equal to the compute owned today by a typical U.S. frontier AI company,” he said. He also cautioned that enforcing know-your-customer rules on Chinese cloud providers would remain a major challenge.
Such concerns had previously led the Biden administration to block sales of advanced AI chips to China. By contrast, the Trump administration, led on AI policy by David Sacks, argues that allowing controlled exports would discourage Chinese firms. Even so, questions remain over how strictly the rules will be enforced and whether Beijing will ultimately permit the chips to be sold domestically. A U.S. review that launched last month paved the way for the first shipments, but the long-term impact on global AI competition remains uncertain.
Web Resources on formal approval of H200 AI Chip sell
1. US approves Nvidia H200 chip exports to China with some conditions
2. US approves sale of Nvidia’s advanced AI chips to China
3. US Clears Path for Nvidia to sell H200s to China via New Rule
4. AcademicBlock.com: US allows Nvidia H200 Chip Exports