In a significant policy shift, the United States Department of Commerce has authorized semiconductor leader Nvidia to resume sales of its advanced artificial intelligence processors to China, according to a Tuesday announcement. This authorization specifically applies to the H200 model, Nvidia’s second-most sophisticated semiconductor, which had previously been restricted due to national security concerns regarding potential technological advantages for China’s military and tech sectors.
The Commerce Department’s Bureau of Industry and Security clarified that exports are permitted under the condition that adequate supplies of these processors are maintained within the United States. This decision follows President Donald Trump’s declaration last month permitting chip sales to “approved customers” in China, accompanied by a mandatory 25% fee on such transactions.
Notably, the authorization excludes Nvidia’s cutting-edge Blackwell processor, which remains prohibited from Chinese markets as the world’s most advanced AI semiconductor. The revised export policy encompasses both the H200 and several less advanced processors in Nvidia’s product lineup.
This development represents the latest chapter in the ongoing geopolitical tensions between Washington and Beijing, where Nvidia has found itself at the center of a technological tug-of-war. The situation intensified when President Trump initially reversed the chip-selling restrictions in July, while simultaneously demanding Nvidia share a portion of its Chinese earnings with the US government.
In response to these measures, Beijing reportedly instructed its technology firms to boycott Nvidia’s China-bound chips in favor of domestically produced semiconductors—a strategic move to strengthen China’s technological independence, despite expert consensus that Chinese chips still trail behind American technology.
Throughout 2025, Nvidia CEO Jensen Huang actively lobbied US officials to permit sales of high-performance chips to China, maintaining that global market access is crucial for maintaining America’s competitive edge in the technology sector. However, some US officials continue to express concerns that these advanced chips could potentially enhance Beijing’s military capabilities and impede American leadership in AI development.