Nvidia's AI Chip Sales to China Approved by US Government

Wed Jan 14 2026 11:56:03 GMT+0200 (Eastern European Standard Time)

In a significant move, the US has authorized Nvidia to sell its advanced H200 AI chips to China, raising concerns over technological competition and security.

The US government has allowed Nvidia to export its advanced H200 AI chips to China, easing previous restrictions aimed at safeguarding US technological dominance. While this decision is expected to bolster Nvidia's market reach and US manufacturing jobs, it has sparked geopolitical tensions as it could enhance China's tech capabilities. The sale is contingent upon proper security measures and a 25% fee on revenues collected by the US government.

The US government has given chip giant Nvidia the green light to sell its advanced artificial intelligence (AI) processors in China, the Department of Commerce said on Tuesday.

The H200, Nvidia's second-most-advanced semiconductor, had been restricted by Washington over concerns that it would give China's technology industry and military an edge over the US.

The Commerce Department said the chips can be shipped to China, granted that there is sufficient supply of the processors in the US.

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 told the BBC 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 told the BBC that Beijing has consistently opposed the 'politicisation and weaponisation of tech and trade issues'. He emphasized that the approach of blocking and restricting China disrupts industrial stability.

Nvidia has found itself in the middle of a geopolitical tug-of-war between the US and China amid a global AI race.

Trump's reversal of the chip-selling restriction last July included a stipulation for Nvidia to pay a cut of its earnings derived from sales in China to the US government.

Beijing had previously encouraged its tech companies to boycott Nvidia's chips bound for China, pushing them to use domestically sourced semiconductors instead. Experts have pointed out that while China's efforts are aimed at strengthening their tech industry, their technology still lags behind that of the US.

Throughout 2025, Nvidia CEO Jensen Huang lobbied for the sale of the firm's high-powered chips to China, emphasizing the need for global market access for American competitiveness.

Some US officials, however, worry that these chips could bolster China's military capabilities while hindering US progress in AI development. A semiconductor analyst noted that while local firms in China are concerned about reliance on Nvidia technology, they remain eager to acquire the H200 chips for now, until alternatives improve.

Trump's unique fee-imposing proposal could reshape future trade negotiations across various sectors, leading to speculation on the potential expansion of similar tariff models.