The administration of former US President Donald Trump officially permitted the sale of Nvidia’s second most powerful AI chips, the H200, to China. This was reported by Reuters.
According to established regulations, an independent testing laboratory will examine the chips for their technical capabilities in artificial intelligence before they are sold.
China is allowed to receive no more than 50% of the total semiconductors sold to American clients.
Nvidia must confirm that there is a sufficient quantity of H200 in the US, and Chinese clients must demonstrate “security measures” and refrain from using the chips for military purposes.
The company stated that Trump’s decision “ensures a thoughtful balance that benefits America” and helps the firm compete in the global market.
“Critics of the administration inadvertently advance the interests of foreign competitors. America must always strive for its industry to compete for vetted and approved commercial enterprises, supporting real jobs for its citizens,” Nvidia stated.
An equity analyst from Seaport Research noted that the export restrictions are a compromise.
“As we have seen, Chinese firms have found ways to access these chips, and the US government approaches the export issue with a high degree of transactionality. In other words, it resembles a band-aid — a temporary attempt to close the vast gap between the US government’s export policy developers,” the expert said.
China’s Lukewarm Response
The Chinese government informed some tech companies that it would approve purchases of the H200 only in special cases, such as for university research. This was reported by The Information.
According to the report, authorities issued a “deliberately vague” directive instructing some firms to purchase semiconductors only when “necessary.”
Previously, the government asked some companies to halt orders for the H200 as it seeks to prioritize domestic developments in the race for AI dominance.
Back in December 2025, Trump announced that Nvidia would receive permission to sell H200 AI chips to “approved clients” in China and other countries, provided that the US receives 25% of the profits.