The US Commerce Department has announced new guidelines allowing Nvidia to sell its advanced artificial intelligence chips in China under certain restrictions, as part of a policy change initiated by President Donald Trump. Specifically, Nvidia can now offer its powerful H200 chip to Chinese buyers, provided they meet specific conditions, including demonstrating adequate US supply. However, sales of Nvidia’s most cutting-edge processors remain restricted.
There is growing uncertainty regarding the level of demand from Chinese companies, as reports suggest that Beijing is promoting the use of domestically-produced chips within the tech industry. Chinese officials have indicated that they may only approve purchases of H200 chips under special circumstances, such as for development labs or university research.
The Commerce Department’s Bureau of Industry and Security (BIS) has shifted its licensing review policy for H200 and similar chips from a presumption of denial to a case-by-case evaluation approach, as outlined in the recent update. Trump’s agreement with Chinese President Xi Jinping on December 9, 2025, allowed Nvidia to export H200 chips to China, with the US government receiving a 25% share of sales.
This policy change represents a significant departure in US export regulations for advanced AI chips, which were previously restricted by the Biden administration over concerns related to national security and Chinese military applications. Some Democrats in Congress have criticized this shift, warning that it could benefit the Chinese military and economy.
Nvidia’s CEO, Jensen Huang, has been a vocal advocate for expanding the company’s chip sales in China, emphasizing the importance of global AI systems being based on US technology. The H200 chips, which are graphic processing units (GPUs) used for training AI models, play a crucial role in the AI ecosystem and have contributed to the ChatGPT release in 2022.
Nvidia, a leading player in the GPU market, has seen significant growth driven by the surging demand for AI technology worldwide. Both China and the US are actively competing for leadership in the AI sector. While H200 chips are slightly outdated compared to Nvidia’s latest offerings, the most advanced chips will remain prohibited from being sold to China.