Nvidia begins shipping H200 AI chips to China as US-China tech tensions thaw slightly

The US Commerce Department had approved sales of H200 chips to roughly 10 Chinese companies by mid-May 2026, but no deliveries had actually been made until now.

The long road from approval to delivery

Export approvals for Nvidia’s H200 chips trace back to a December 2025 decision under the Trump administration, which began loosening what had been some of the most aggressive semiconductor export restrictions in modern trade policy.

Those approvals included a 25% surcharge on the chips and mandatory inspection requirements, essentially making each sale more expensive and more scrutinized than a standard commercial transaction.

Nvidia CEO Jensen Huang confirmed back in March 2026 that the company had restarted manufacturing orders for Chinese clients after receiving the relevant licenses.

As of early July 2026, reports indicated that China was preparing to allow select domestic AI firms, including Alibaba and ByteDance, to purchase a limited quantity of H200 chips. The expected cap sits below 200,000 units.

China’s self-reliance push complicates Nvidia’s re-entry

Chinese firms have reportedly been hesitant to rush into H200 purchases. Part of that reluctance stems from Beijing’s own directives, which are aggressively pushing domestic chip production and reducing dependency on American technology.

Huawei has emerged as the most visible beneficiary of this strategy, making significant progress in the domestic AI chip market and positioning itself as a viable alternative for Chinese tech firms.

What this means for investors

A sub-200,000-unit cap represents meaningful revenue, but it’s not the kind of volume that moves the needle for a company generating tens of billions in quarterly data center sales.

The 25% surcharge attached to these exports does narrow the competitive pricing gap, giving Chinese buyers evaluating total cost of ownership a financially stronger case for considering domestic options.

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