US approves Nvidia H200 chip exports to China under new AI rules

The United States has approved the export of advanced AI chips made by Nvidia to China, marking a notable adjustment in Washington’s technology trade policy amid ongoing US–China tensions.

Under the revised rules, Nvidia is permitted to sell its H200 data centre processors to Chinese customers, subject to licensing conditions and compliance requirements designed to limit potential military or intelligence uses. The H200 is a high-performance AI accelerator used in data centres for training and running large artificial intelligence models, and had previously been caught by tighter export controls aimed at restricting China’s access to cutting-edge computing power.

US officials have framed the move as a calibrated shift rather than a wholesale rollback of restrictions. The updated policy is intended to allow some commercial sales to continue while maintaining safeguards around national security. These include monitoring end use, licensing oversight by the Commerce Department, and limits on how the chips can be deployed.

The decision reflects the difficulty of balancing strategic competition with economic realities. China remains an important market for Nvidia, particularly as global demand for AI chips accelerates. Allowing limited exports could help US firms retain market share while avoiding the complete decoupling of technology supply chains.

At the same time, the approval underscores persistent concerns in Washington about advanced AI hardware being diverted to sensitive applications. US policymakers have repeatedly stressed that export controls will remain in place for the most powerful systems and for technologies deemed critical to military capabilities.

For the semiconductor industry, the policy change provides some clarity after months of uncertainty. Investors and technology companies are watching closely to see whether the adjustment signals a more flexible approach to export controls, or a narrowly defined exception within a broader framework of strategic restrictions.