US Grants Conditional Approval For Nvidia H200 Exports To China
Synopsis
The US has approved Nvidia’s H200 exports to China on an individual licensing basis, limiting overseas sales to 50% while prioritising domestic supply following the Trump-Xi agreement. The Biden administration has eased earlier restrictions as demand rises, even as Beijing continues to permit only limited, special-purpose imports. Officials say the move is designed to balance competition in advanced AI chips, secure revenue flows, around 25% returning to the US, and protect national security interests.
On January 13, 2026, the US Department of Commerce changed its export rules to permit shipments of Nvidia’s H200 AI chips to China, ending the Biden administration’s default ban. Exports will be approved on a case-by-case basis, with conditions requiring an adequate supply for US customers and capping shipments to China at 50% of domestic sales, according to the Bureau of Industry and Security. The decision follows a December agreement between President Donald Trump and Chinese President Xi Jinping, which guarantees US companies a 25% share of related revenue, as Chinese demand for advanced AI chips remains strong.
Policy Shift from Biden Restrictions
In January 2025, the Biden administration shut down sales of Nvidia’s H200 chips to China, citing fears the technology could bolster military AI systems. A year later, the policy has shifted. The Trump administration rewrote export review rules to reopen the door for the H200 and similar chips, allowing shipments to proceed with individual approvals.
During the freeze, Nvidia asked Chinese customers to pay upfront, a safeguard against long licensing delays. That hurdle has now eased as permits begin to clear. CEO Jensen Huang said fresh purchase orders show demand remains strong, and the company is preparing to ramp up production.
China's Parallel Import Controls
China is pushing back cautiously. Regulators have told companies to limit purchases of Nvidia’s H200 chips to special cases and to pause new orders while US export rules remain uncertain. Officials are also steering firms toward homegrown options, including chips produced by Huawei.
The move cools Nvidia’s immediate upside from renewed export approvals, even as US controls are designed to prevent chipmakers from leaning too heavily on China for future growth.
Tech Sector and Global Implications
Nvidia has managed to keep a foothold in China, a market that still matters for building and training powerful AI systems. That access has helped lift its stock, as cloud providers and startups rely on the H200 to train large models. But the limits remain clear. Nvidia’s newer Blackwell chips are still off-limits, underscoring the ongoing US-China tech standoff.
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