Trump Approved an Nvidia Chip for Sale in China. Beijing Doesn’t Want It.

Nvidia’s H200 chip, cleared for sale in China by former President Trump in late 2024, has failed to gain traction six months later, with no purchases recorded. The chip, a cornerstone for AI systems, was seen as a potential boost for China’s AI ambitions but aligns with neither Beijing’s push for domestic chip alternatives nor Washington’s geopolitical caution. Beijing has instead directed companies toward homegrown options like Huawei and Cambricon, reinforcing its decade-long strategy of technological self-sufficiency. President Xi Jinping’s March 2026 plan to advance AI, quantum computing, and fusion energy underscores this focus, despite industry complaints about limited computing power. Chinese AI startups, including those visited by hedge fund manager Kevin Xu, cite lack of computing resources as their biggest hurdle. However, companies are adapting by designing systems around existing constraints, reflecting Beijing’s dual priorities of protecting domestic industries while expanding AI capacity. Nvidia CEO Jensen Huang, who joined Trump’s delegation to China in March 2026, avoided discussing the H200 chip but expressed optimism about eventual market access. He noted China’s long-term need for AI infrastructure, suggesting regulatory barriers may ease over time. The impasse highlights deepening mistrust between the U.S. and China, where technology is now a national security priority. Trump attributed China’s disinterest in the H200 to its self-reliance push, while experts warn the move risks helping China narrow the AI gap with Western rivals.