Nvidia Cleared to Sell H200 Chips to China

A pivotal policy shift amid geopolitical friction reshapes the AI chip landscape — but deliveries remain stalled

In mid‑May 2026, the U.S. government granted conditional approval for Nvidia to sell its high‑performance H200 AI chips to around ten major Chinese firms, including Alibaba, Tencent, ByteDance, and JD.com. Yet, shipments remain on hold as Beijing pushes back amid strategic self‑reliance goals and security concerns. This article unpacks the regulatory journey, geopolitical stakes, and what lies ahead for global AI chip markets.

1. A Reversal in Export Policy

On May 14, 2026, the U.S. Commerce Department granted export licenses permitting approximately ten Chinese companies—including Alibaba, Tencent, ByteDance, and JD.com—to purchase Nvidia’s H200 AI chips, marking a major shift in export policy . The licenses also extend to distributors like Lenovo and Foxconn, each allowed to distribute up to 75,000 units under Nvidia’s export license . These approvals come with strict conditions: all shipments must pass through third-party inspection in the U.S., and Nvidia must remit a 25% fee of sale revenue to the U.S. government .

2. Beijing Holds the Line

Despite U.S. approval, not a single H200 chip has been delivered to China yet. Sources indicate that Chinese authorities have stalled shipments, citing strategic priorities to bolster domestic semiconductor development . Commerce Secretary Howard Lutnick confirmed that China’s central government has not authorized any imports so far, reflecting a broader push toward self‑reliance in AI hardware .