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The U.S. government has granted approval for Nvidia to sell its advanced AI chips in China, as announced by the Department of Commerce on Tuesday. Previously, the sale of the H200, which is Nvidia's second-most advanced semiconductor, was restricted due to concerns that it could bolster China's technological and military advancements, potentially posing a competitive threat to the U.S. The Commerce Department noted that shipments of these chips to China are allowed provided that there is a sufficient supply of the processors available within the United States.
President Donald Trump said last month that he would allow the chip sales to "approved customers" in China and collect a 25% fee.
Nvidia's spokesperson said that the company welcomed the move, saying it will benefit manufacturing and jobs in the US.
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. Chinese customers must also show "sufficient security procedures" and cannot use the chips for military uses.
The H200 chip is a generation behind Nvidia's Blackwell processor, which is considered to be the world's most advanced AI semiconductor and remains blocked from sale in China.
Chinese embassy spokesman Liu Pengyu said on Wednesday that Beijing has consistently opposed the "politicisation and weaponisation of tech and trade issues".
"We oppose blocking and restricting China, which disrupts the stability of industrial and supply chains," he said. "This approach does not serve the common interests of both sides."
Nvidia has been caught in a geopolitical tug-of-war between the US and China - two sides of a global AI race. Trump reversed the chip-selling restriction last July, but demanded that Nvidia pay a cut of its earnings from China to the US government. Beijing then reportedly ordered its tech companies to boycott Nvidia's China-bound chips and prioritise semiconductors made domestically. That move was designed to bolster China's tech industry, though experts have consistently said that the country's chips still lag behind the US.
Throughout 2025, Nvidia CEO Jensen Huang continually lobbied Washington to allow the sale of the firm's high-powered chips to China, arguing that global market excess is essential for America's competitiveness.
Some officials in the US, however, have expressed concerns that the chips would benefit Beijing's military and hurt America's progress in AI development.
