Department of Commerce grants permission for Nvidia H200 chip shipments to China
Nvidia's Advanced AI Chips Cleared for Export to China
The United States has decided to permit Nvidia to export its H200 AI chips to China, according to reports from Semafor. These shipments will be allowed for select, government-approved buyers within China, with the U.S. government set to receive a 25% share of the sales revenue, as noted by CNBC.
The H200 chips represent a significant technological leap over the H20 models that Nvidia previously designed for the Chinese market. However, only H200 units that are approximately a year and a half old will be eligible for export, as detailed by Semafor.
Commenting on the development, an Nvidia representative told TechCrunch, “We commend President Trump’s move to enable the American semiconductor sector to compete globally, supporting well-paying jobs and domestic manufacturing. Allowing vetted commercial customers in China to access the H200 chips, under the Department of Commerce’s oversight, achieves a balanced approach that benefits the United States.”
This policy shift follows a recent statement from U.S. Commerce Secretary Howard Lutnick, who indicated that the final decision regarding H200 chip exports rested with President Donald Trump.
Legislative Pushback and Security Concerns
The decision to authorize these exports has sparked debate in Congress, where national security concerns remain prominent. On December 4, Senators Pete Ricketts (Republican, Nebraska) and Chris Coons (Democrat, Delaware) introduced legislation aimed at halting the export of advanced AI chips to China for over two years.
The proposed SAFE (Secure and Feasible Exports) Chips Act would require the Department of Commerce to reject any license applications for exporting advanced AI chips to China for a period of 30 months. The timeline for a congressional vote on this bill is uncertain, especially in light of the Trump administration’s recent approval of H200 chip sales.
Although Congress has consistently expressed reservations about sending sophisticated AI hardware to China, President Trump’s stance on the issue has fluctuated.
Background on Export Restrictions
Earlier this year, the Trump administration imposed licensing requirements on companies like Nvidia seeking to export chips to China. This move came before the administration officially rolled back a Biden-era rule that would have further restricted AI chip exports. During the summer, U.S. officials indicated that exports could resume if the government received a 15% share of the proceeds, as AI chips became a point of negotiation in broader trade discussions with China.
Despite these developments, demand for American-made chips in China had already weakened.
China’s Response and Market Impact
In September, China’s Cyberspace Administration prohibited domestic firms from purchasing Nvidia’s chips, prompting Chinese companies to turn to alternatives from local providers such as Alibaba and Huawei.
On Monday, President Trump announced via Truth Social that Chinese President Xi Jinping had “responded positively” to the latest news regarding the H200 chips.
This article was updated on December 8 to reflect confirmation of the export decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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