US Clears H200 Chip Sales to 10 China Firms as Nvidia CEO Looks for Breakthrough

The U.S. Commerce Department has approved around 10 Chinese companies—including Alibaba, Tencent, ByteDance, and JD.com—as well as distributors like Lenovo and Foxconn to purchase Nvidia’s H200 AI chips. Each approved buyer can acquire up to 75,000 chips under U.S. licensing terms, but no deliveries have taken place since the approvals, leaving the deal in limbo. Nvidia CEO Jensen Huang joined a U.S. delegation to Beijing after initially being excluded, following an invitation from former President Donald Trump. The trip aimed to ease tensions over chip sales, with Huang meeting with Chinese officials to discuss trade barriers. Despite approvals, Chinese firms have pulled back due to guidance from Beijing, which prioritizes domestic AI chip development over foreign imports. The U.S. imposed security requirements in January, mandating that Chinese buyers prove they have adequate safeguards against military use. Nvidia must also verify compliance before sales can proceed. Commerce Secretary Howard Lutnick previously noted that Beijing has not yet allowed purchases, citing efforts to support its own AI chip industry. Nvidia’s market dominance in China has eroded due to U.S. export restrictions, with Huang warning that its share of AI accelerators in the country has dropped to zero. Chinese firms like DeepSeek are increasingly relying on domestic chips, including those from Huawei, reducing reliance on Nvidia’s technology. The stalled deal highlights the broader U.S.-China tech rivalry, where national priorities clash over semiconductor trade. While Nvidia remains the world’s most valuable chipmaker, its ability to operate in China hinges on geopolitical decisions from both governments.