U.S. Clears Nvidia H200 Sales to China Firms — But No Chips Have Moved

CNBC reported Thursday that Washington has authorized roughly ten Chinese companies to purchase Nvidia’s H200 AI accelerator, yet no chips have actually changed hands. The deals remain stalled as Nvidia CEO Jensen Huang travels to Beijing seeking a diplomatic resolution.

Huang Joins Trump’s Beijing Delegation

Huang was not originally part of a White House delegation to China. President Donald Trump later extended a personal invitation, picking him up in Alaska before continuing to a summit with Chinese President Xi Jinping. The move signals how high-stakes chip access has become in broader U.S.-China trade talks.

Among the firms cleared to buy H200 units are Alibaba, Tencent, ByteDance, and JD.com, according to sources cited by CNBC. Distributors including Lenovo and Foxconn have also received approval. Lenovo confirmed its status in a statement to Reuters. Each approved buyer may purchase up to 75,000 chips under existing U.S. licensing terms.

Why the Deals Have Stalled

Despite Washington’s sign-off, Chinese companies have pulled back after guidance from Beijing, per CNBC’s sources. Commerce Secretary Howard Lutnick told a Senate hearing last month that China’s central government had effectively blocked purchases, directing investment toward domestic chipmakers instead.

Beijing’s hesitation reflects a deliberate industrial strategy. Firms like DeepSeek have publicly championed reliance on homegrown processors, including those produced by Huawei. That shift makes Nvidia’s market position increasingly fragile. Huang has previously warned that export restrictions have pushed the company’s share of China’s AI accelerator market to near zero.

Background — From Dominance to Deadlock

Before U.S. controls tightened, Nvidia held roughly 95% of China’s advanced chip market. China once contributed around 13% of the company’s total revenue. Huang has estimated the country’s AI infrastructure market could be worth $50 billion this year alone, making the standoff enormously costly for Nvidia.

Competing Rules Add Further Friction

The route to any completed transaction is complicated by requirements on both sides. U.S. rules introduced in January demand that Chinese buyers prove security compliance and confirm chips will not serve military purposes. A separate arrangement brokered by Trump requires chips to pass through U.S. territory before export, allowing Washington to collect 25% of sale revenue. That transit requirement has raised concerns in Beijing about potential tampering.

Until both governments align, the approvals remain largely symbolic.

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