US Approves H200 Chip Sales to Ten Chinese Firms

What Happened

The United States government has approved export licenses allowing Nvidia's H200 artificial intelligence chips to be sold to approximately ten Chinese companies, Reuters reported on May 14. No deliveries have taken place so far, despite the approvals being in place.

The development comes as Nvidia chief executive Jensen Huang has been seeking to restore access for the company's products in the Chinese market following a series of tightening export restrictions imposed by successive US administrations.

Background

The H200 is Nvidia's second-most powerful AI chip currently available for sale. The company's most advanced chip, the H100, was placed under strict export controls to China in October 2022, when the Biden administration moved to limit Beijing's access to high-end semiconductors that could be used for military applications or to advance Chinese AI capabilities.

Subsequent rule updates in 2023 and 2024 further tightened restrictions, blocking or curtailing exports of a range of Nvidia chips to China and other countries subject to enhanced scrutiny. Those restrictions prompted Nvidia to develop China-specific, reduced-performance versions of some chips, including the A800 and H800, though those products were also later restricted.

China has historically been one of Nvidia's largest markets. Prior to the export control regime, the country accounted for a significant share of the company's data center revenue. Nvidia has publicly stated that the restrictions have cost the company substantial revenue and have benefited domestic Chinese chipmakers.

Jensen Huang visited China in April 2025 and met with government officials and business leaders, signaling continued interest in re-engaging the market. He has stated publicly that US export controls, while intended to limit Chinese AI development, risk accelerating domestic Chinese chip production and ceding market share without achieving their policy objectives.

The Approvals

According to Reuters, the approximately ten Chinese firms cleared to purchase H200 chips have received individual export licenses from the US Commerce Department. The identities of the approved companies were not disclosed in the report.

The H200 represents an incremental upgrade over the H100, incorporating high-bandwidth memory improvements that increase AI inference and training performance. Its inclusion in the export control framework had previously made sales to Chinese entities subject to licensing requirements on a case-by-case basis.

The fact that no deliveries have been completed despite the licenses being granted suggests logistical, commercial, or procedural steps remain outstanding between the approvals and actual shipments reaching customers.

Broader Context

The licensing development comes against a backdrop of shifting US-China relations on technology policy. A separate Reuters report published the same day noted that the Trump administration has begun engaging in direct talks with Chinese counterparts on AI governance, driven in part by concerns about the consequences of unchecked AI development on both sides.

The US Commerce Department's Bureau of Industry and Security administers the export licensing process. Under current rules, sales of advanced AI chips to Chinese entities require individual licenses rather than operating under broader license exemptions available in other markets.

Nvidia's position in the global AI chip market remains dominant. The company held an estimated 70 to 80 percent share of the market for AI training accelerators as of 2024, according to industry analysts cited in prior reporting. Competition from domestic Chinese chipmakers, including Huawei's Ascend line, has grown but remains limited in scale relative to Nvidia's output.

The Commerce Department had not issued a public statement on the H200 licenses as of the time of Reuters' report. Nvidia did not provide a comment detailed enough to quote directly in the wire report.

The approved Chinese firms are expected to work through remaining steps before any H200 shipments are completed, with the timeline for first deliveries not publicly confirmed.