The U.S. Department of Commerce announced on Tuesday that it would allow Nvidia to resume shipments of H200 chips to Chinese customers, marking the latest move by the Trump administration to ease technology export restrictions to China. The H200 is Nvidia's second-most-advanced AI processor, previously restricted over concerns about bolstering China's tech and military capabilities.
The U.S. government announced on January 13, 2026 (Tuesday) its approval for Nvidia's H200 artificial intelligence chips to be exported to China, following restrictions imposed in January 2025 during the final days of the Biden administration as part of the AI Diffusion Rule aimed at limiting access to advanced American technology by other countries. Last month, U.S. President Donald Trump stated on social media that Nvidia would be allowed to sell H200 chips to 'approved customers' in China in exchange for a 25% fee to the U.S. government. The Department of Commerce specified that the policy applies to the H200 and less advanced processors, provided there is sufficient supply in the U.S., and that Chinese customers must demonstrate 'sufficient security procedures' with no military applications permitted. The H200 chip outperforms the H20 but lags behind Nvidia's latest Blackwell processor, which remains blocked from sales to China. An Nvidia spokesperson welcomed the decision, stating it would benefit U.S. manufacturing and jobs. Nvidia CEO Jensen Huang had lobbied Washington throughout 2025 to permit sales of high-powered chips, arguing that global market access is essential for American competitiveness. Chinese Embassy spokesman Liu Pengyu told the BBC on Wednesday that Beijing consistently opposes the 'politicisation and weaponisation of tech and trade issues,' adding, 'We oppose blocking and restricting China, which disrupts the stability of industrial and supply chains. This approach does not serve the common interests of both sides.' In July 2025, Trump reversed some chip-selling restrictions but demanded a cut of Nvidia's earnings from China. Beijing then reportedly ordered its tech firms to boycott Nvidia's China-bound chips and prioritize domestic semiconductors, though experts note China's chips still trail U.S. technology. Semiconductor analyst Austin Lyons said Chinese firms are eager to secure H200 chips until homegrown alternatives improve, while Nvidia is pleased to gain revenue from China even at reduced margins due to the government cut. Trump's 'unique' fee proposal could set a precedent for tariffs in other sectors, according to Marc Einstein of Counterpoint Research.
