{"id":111032,"date":"2026-01-14T04:36:00","date_gmt":"2026-01-14T04:36:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=111032"},"modified":"2026-01-14T04:36:00","modified_gmt":"2026-01-14T04:36:00","slug":"us-approves-sale-of-nvidias-advanced-ai-chips-to-china","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=111032","title":{"rendered":"US approves sale of Nvidia\u2019s advanced AI chips to China"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 33 Second <\/div>\n\n <\/div>
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The US government has given chip giant Nvidia the green light to sell its advanced artificial intelligence (AI) processors in China, the Department of Commerce said on Tuesday.<\/p>\n

The H200, Nvidia\u2019s second-most-advanced semiconductor, had been restricted by Washington over concerns that it would give China\u2019s technology industry and military an edge over the US.<\/p>\n

The Commerce Department said the chips can be shipped to China, provided there is a sufficient supply of the processors in the US.<\/p>\n

President Donald Trump\u00a0said last month\u00a0that he would allow the chip sales to \u201capproved customers\u201d in China and collect a 25% fee.<\/p>\n

Nvidia\u2019s spokesperson told the BBC that the company welcomed the move, saying it will benefit manufacturing and jobs in the US.<\/p>\n

The Commerce Department\u2019s Bureau of Industry and Security said its revised export policy applies to Nvidia\u2019s H200 chips, as well as less advanced processors. Chinese customers must also show \u201csufficient security procedures\u201d and cannot use the chips for military uses.<\/p>\n

The H200 chip is a generation behind Nvidia\u2019s Blackwell processor, which is considered to be the world\u2019s most advanced AI semiconductor and remains blocked from sale in China.<\/p>\n

Chinese embassy spokesman Liu Pengyu told the BBC on Wednesday that Beijing has consistently opposed the \u201cpoliticisation and weaponisation of tech and trade issues\u201d.<\/p>\n

\u201cWe oppose blocking and restricting China, which disrupts the stability of industrial and supply chains,\u201d he said. \u201cThis approach does not serve the common interests of both sides.\u201d<\/p>\n

Nvidia has been caught in a geopolitical tug-of-war between the US and China \u2013 two sides of a global AI race.<\/p>\n

Trump reversed the chip-selling restriction last July, but demanded that Nvidia pay a cut of its earnings from China to the US government.<\/p>\n

Beijing then reportedly ordered its tech companies to boycott Nvidia\u2019s China-bound chips and prioritise domestically produced semiconductors. <\/p>\n

That move was\u00a0designed to bolster China\u2019s tech industry, though experts have consistently said that China\u2019s chips still lag behind those in the US.<\/p>\n

Throughout 2025, Nvidia CEO Jensen Huang continually\u00a0lobbied Washington\u00a0to allow the sale of the firm\u2019s high-powered chips to China, arguing that global market excess is essential for America\u2019s competitiveness.<\/p>\n

Some officials in the US, however, have expressed concerns that the chips would benefit Beijing\u2019s military and hurt America\u2019s progress in AI development.<\/p>\n

While Beijing is likely concerned about domestic firms becoming over-reliant on Nvidia, local firms will be eager to secure H200 chips \u2013 at least until homegrown alternatives get better, said semiconductor analyst Austin Lyons.<\/p>\n

Nvidia will also be happy to get any revenue from China, even if it comes at a lower margin due to the US government taking a cut of the sales, Lyons added.<\/p>\n

Trump\u2019s \u201cunique\u201d proposal to collect a cut of Nvidia\u2019s sales could also set a precedent for his negotiations in other trade tariffs, said Marc Einstein from Counterpoint Research.<\/p>\n

\u201cIt will be interesting to see if this tariff model expands to other sectors.\u201d<\/p>\n<\/div>\n

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