US May Allow Nvidia H200 Chip Exports to China After Trade Truce
The United States Commerce Department is considering approval for Nvidia’s H200 artificial intelligence chip to be exported to China, according to a source familiar with the discussions.
The development, first reported by Semafor and later confirmed to Reuters by a source, comes shortly after U.S. President Donald Trump and China’s President Xi Jinping agreed to ease tensions during a recent meeting in Busan, South Korea. Following the report, Nvidia’s stock gained nearly 2%.
Officials reportedly view the decision as a compromise between banning all U.S. chip exports to China and allowing the sale of Nvidia’s newest Blackwell series processors, which remain restricted. Policymakers fear a complete ban may push Chinese firms toward domestic alternatives, particularly Huawei, which has been rapidly developing its own AI processors.
Neither Nvidia nor the U.S. Commerce Department have commented publicly on the matter.
Military and Security Concerns Remain
Lawmakers critical of the move argue that supplying advanced AI chips to China could support Beijing’s military modernization and technological expansion. Restrictions on high-performance semiconductors were originally imposed over these concerns.
U.S. Senator Elizabeth Warren criticized the potential approval, claiming it could accelerate China’s advancement in artificial intelligence and national defense capabilities. She also pointed to Nvidia’s lobbying efforts and private talks with government officials.
How Powerful Is the H200 Chip?
The H200, introduced two years ago, features enhanced high-bandwidth memory, allowing significantly faster data processing compared to its predecessor, the H100.
A report from the Institute for Progress states the H200 is nearly six times more powerful than the H20 — currently the most advanced Nvidia chip legally accessible to Chinese companies. With access to H200 units, China could build AI systems approaching U.S. performance levels, though with higher operational costs, the report added.
China Reacts With Caution
Despite demand from Chinese tech firms, Beijing has shown concern over potential security risks. China’s cybersecurity regulator recently questioned Nvidia about possible hidden vulnerabilities or “backdoors” in the H20 chip — claims Nvidia denied.
Technology experts say Chinese AI companies are unlikely to reject the H200 if access is granted.
Others note that China’s acceptance may depend on national strategy rather than market demand. Concerns over reliance on American technology and pressure to grow the domestic chip industry may influence Beijing’s final response.