United States Approves Sale of Nvidia's Advanced H200 Chips to China

(Patria) - The US government has given chip giant Nvidia the green light to sell its advanced artificial intelligence (AI) processors in China, the BBC reported.

The H200, Nvidia's second most advanced semiconductor, had been restricted by Washington due to concerns that it would give China's tech industry and military an edge over the US.

The Commerce Department stated that the chips can be supplied to China on the condition that there is sufficient supply of processors in the US.

President Donald Trump said last month that he would allow the sale of chips to "approved buyers" in China and charge a 25% fee.

The Commerce Department's Bureau of Industry and Security stated that their revised export policy applies to Nvidia's H200 chips, as well as less advanced processors.

The H200 chip is one generation behind Nvidia's Blackwell processor, which is considered the world's most advanced AI semiconductor and whose sale remains blocked in China. Nvidia has found itself in a geopolitical tug-of-war between the US and China – two sides in a global race to develop artificial intelligence (AI).

Last July, Trump reversed the chip sales restriction but required Nvidia to pay a portion of its China earnings to the US government.

Beijing then reportedly ordered its tech companies to boycott Nvidia chips and prioritize domestically produced semiconductors to bolster China's tech industry, although experts consistently argue that the country's chips still lag behind American ones.

Throughout 2025, Nvidia CEO Jensen Huang has continuously lobbied Washington to allow the sale of the company's powerful chips to China, arguing that a global market surplus is crucial for America's competitiveness.

However, some US officials have expressed concerns that the chips would be used by the Chinese military and harm American progress in AI development.