The U.S. Department of Commerce has approved Nvidia's sale of its H200 artificial intelligence (AI) processors and other less advanced chips to China. This decision, announced on Tuesday, marks a reversal of earlier restrictions implemented to prevent China's technology sector and military from obtaining an advantage. The approval is subject to several conditions, including ensuring a sufficient domestic supply of these processors within the United States.
Approval Details and Conditions
The authorization permits Nvidia to ship its H200 AI chip, described as its second-most advanced semiconductor, to Chinese customers. The approval also extends to other less advanced chips.
The Commerce Department's approval is contingent upon several stipulations:
- A sufficient supply of the processors must remain available within the United States.
- Chinese customers purchasing the chips must implement adequate security procedures.
- The chips are explicitly prohibited from being used for military purposes.
Nvidia's top-tier Blackwell processor, which is one generation more advanced than the H200, remains restricted from sale in China.
Company and International Context
Nvidia stated that it welcomed the development, noting potential positive impacts on manufacturing and job creation within the United States.
The U.S. government had previously restricted sales of certain advanced chips to China, citing national security concerns. Former President Donald Trump had also indicated a willingness to allow chip sales to approved Chinese customers, provided a 25% fee was applied.
In response to U.S. restrictions on technology and trade, Liu Pengyu, a spokesperson for the Chinese embassy, previously stated Beijing's opposition to the "politicisation and weaponisation of tech and trade issues." He argued that such restrictions destabilize industrial and supply chains and do not serve mutual interests. The current approval occurs within the broader context of ongoing geopolitical competition in the global AI sector between the U.S. and China.