The United States government has granted conditional approval for the sale of Nvidia's powerful H200 artificial intelligence chips to buyers in China, marking a significant shift in semiconductor export policy.
New Rules for a High-Tech Trade
On Wednesday, 14 January 2026, the Commerce Department's Bureau of Industry and Security unveiled new regulations that effectively give the green light to these exports, albeit with a series of stringent security requirements. The decision follows President Donald Trump's announcement over a month prior that he would allow such sales to "approved customers".
The key conditions mandate that Nvidia must first ensure an adequate supply of the chips within the United States. Furthermore, all H200 chips destined for China must undergo a rigorous third-party review before export. Crucially, China is prohibited from using the technology for military purposes and is not allowed to import more than 50% of the quantity sold to US customers.
Industry Applause and Political Objections
Nvidia welcomed the move, stating in a prepared statement to The Associated Press: "We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America."
However, the decision has faced opposition. A group of Democratic senators has objected, arguing that the advanced chips could aid China's military, enhance its capability to carry out cyberattacks against the US, and bolster its economic and manufacturing sectors.
It is important to note that the H200 is not Nvidia's most advanced product. The company's newer Blackwell chips and the upcoming Rubin architecture were not included in this export approval.
Broader Context and Security Concerns
The approval is seen by many as a reflection of the close relationship between Nvidia's founder and CEO, Jensen Huang, and President Trump. Nevertheless, significant concerns persist that China could use the technology to develop its own AI products in ways that pose national security risks to the US—a primary concern of the previous Biden administration, which had sought stricter export limits.
This development follows a deal struck in August, where Nvidia and rival AMD agreed to share 15% of their revenues from chip sales to China with the US government as part of an arrangement to secure export licenses for their semiconductors.
