
"Nvidia appeared to have scored a major coup when President Trump on Monday wrote on Truth Social that the U.S. government would allow the sale of its powerful H200 AI chips to China. Previously, the chip company lobbied its way to an approval to sell its older and weaker H20 chip in China-the world's second-largest economy and a hotbed of AI and robotics research-but President Xi Jinping told Chinese firms not to buy them, citing security reasons."
"Now reports say that the Chinese government plans to restrict the import of the H200s, allowing only a small set of trusted Chinese companies or research organizations to get them. Reuters reports that Alibaba and ByteDance want to order H200s but are waiting for a final decision from the Chinese government. Xi wants Chinese companies to use chips from domestic companies such as Huawei, which could help the Chinese chip companies catch up with Nvidia in a technological sense."
President Trump's Truth Social post indicated U.S. approval to sell Nvidia's powerful H200 AI chips to China. Nvidia previously obtained permission to sell the older H20 chips, which Chinese leadership discouraged buying for security reasons. The U.S. set conditions for H200 exports, including a 25% cut of sales for the U.S., mandatory security reviews, and continued export bans on the Blackwell GPU. Chinese authorities now plan to restrict H200 imports to a small set of trusted companies and research organizations, with Alibaba and ByteDance reportedly waiting for approval. Xi Jinping is pushing domestic adoption of chips from companies like Huawei to advance China's semiconductor capabilities.
Read at Fast Company
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