Key Takeaways
- The US government has lifted restrictions on Nvidia’s advanced AI processors, allowing the company to sell them in China
- The H200 chip, Nvidia’s second-most-advanced semiconductor, can be shipped to China as long as there is sufficient supply in the US
- The Commerce Department’s revised export policy applies to Nvidia’s H200 chips and less advanced processors
- Nvidia’s Blackwell processor, considered the world’s most advanced AI semiconductor, remains blocked from sale in China
- The move is seen as a significant development in the global AI race between the US and China
Introduction to the US-China Chip Saga
The US government has given Nvidia the green light to sell its advanced artificial intelligence (AI) processors in China, according to the Department of Commerce. As stated by the Department, the H200 chip, Nvidia’s second-most-advanced semiconductor, "can be shipped to China granted that there is sufficient supply of the processors in the US." This move marks a significant shift in the US-China chip saga, which has been ongoing for several years. The H200 chip had been restricted by Washington over concerns that it would give China’s technology industry and military an edge over the US.
The Geopolitical Tug-of-War
Nvidia has been caught in a geopolitical tug-of-war between the US and China, two sides of a global AI race. As President Donald Trump said last month, he would allow the chip sales to "approved customers" in China and collect a 25% fee. This decision has been met with mixed reactions, with some officials in the US expressing concerns that the chips would benefit Beijing’s military and hurt America’s progress in AI development. On the other hand, Nvidia CEO Jensen Huang has continually lobbied Washington to allow the sale of the firm’s high-powered chips to China, arguing that "global market excess is essential for America’s competitiveness."
The Impact on the Global AI Race
The Commerce Department’s revised export policy applies to Nvidia’s H200 chips, as well as less advanced processors. However, Nvidia’s Blackwell processor, considered the world’s most advanced AI semiconductor, remains blocked from sale in China. This move is seen as a significant development in the global AI race between the US and China. As the BBC reported, "Beijing then reportedly ordered its tech companies to boycott Nvidia’s China-bound chips and prioritise semiconductors made domestically." This move was designed to bolster China’s tech industry, though experts have consistently said that the country’s chips still lag behind the US.
Nvidia’s Lobbying Efforts
Throughout 2025, Nvidia CEO Jensen Huang continually lobbied Washington to allow the sale of the firm’s high-powered chips to China. As Huang argued, "global market excess is essential for America’s competitiveness." Huang’s efforts have finally paid off, with the US government lifting restrictions on the sale of Nvidia’s advanced AI processors in China. However, the move is not without controversy, with some officials in the US expressing concerns that the chips would benefit Beijing’s military and hurt America’s progress in AI development.
The Future of US-China Chip Relations
The future of US-China chip relations remains uncertain, with the US government’s decision to lift restrictions on Nvidia’s advanced AI processors marking a significant shift in the US-China chip saga. As the global AI race continues to heat up, it remains to be seen how the US and China will navigate the complex web of chip exports and imports. One thing is certain, however: the US government’s decision to allow Nvidia to sell its advanced AI processors in China will have significant implications for the global tech industry. As the Commerce Department stated, the revised export policy applies to Nvidia’s H200 chips and less advanced processors, marking a new era in US-China chip relations.
https://www.bbc.com/news/articles/cg4erx1n04lo