US clears Nvidia to sell H200 AI chips in China under new limits

The United States has approved Nvidia to export its H200 artificial intelligence chips to China, easing restrictions on the company’s second-most advanced processor after months of debate over national security risks.

The Commerce Department said Tuesday that sales can proceed as long as there is adequate supply for the US market, and Chinese buyers demonstrate strong security controls while avoiding military use. The move keeps Nvidia’s Blackwell chips — its most powerful — off-limits to China.

The policy shift follows President Donald Trump’s announcement that he would permit sales to “approved” Chinese customers, while imposing a 25 percent charge on revenue earned through those shipments.

Nvidia welcomed the decision, saying it will support US manufacturing and jobs. China’s embassy criticised Washington for politicising technology trade, warning that such measures harm global supply chains.

The approval marks the latest step in a high-stakes technology rivalry between the world’s two largest economies. Beijing had previously urged local firms to boycott Nvidia chips and boost domestic alternatives, though analysts say Chinese processors still trail the US.

Experts note that Nvidia stands to regain valuable business even at reduced margins, while Trump’s revenue-share requirement could influence future trade negotiations across other industries.