US Approves Nvidia H200 Exports as China AI Race Accelerates

• Reports say the US approved NVIDIA H200 AI chip sales to major Chinese firms, including Alibaba, Tencent, ByteDance, and JD.com
• Jensen Huang joined Trump’s Beijing visit as investors watched for progress in US-China trade and AI chip discussions
• NVIDIA stock gained after the reports, though deliveries remain delayed amid regulatory scrutiny in both the US and China

Nvidia’s China business returned to focus this week after reports said the US approved H200 AI chip sales to several major Chinese technology companies during the Trump-Xi meeting in Beijing. The development comes at a sensitive time for US-China trade relations. Investors are closely watching whether ongoing talks could ease pressure around AI chips and semiconductor exports. NVIDIA stock also moved higher after the reports. This comes as uncertainty remains around whether the approved sales will actually be completed.

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US Approves H200 Chip Sales to Major Chinese Tech Firms

Reuters reported that the US Commerce Department approved around 10 Chinese companies to purchase NVIDIA H200 chips. This includes Alibaba, Tencent, ByteDance, and JD.com. Lenovo and Foxconn were also reportedly cleared as distributors.

The H200 is one of the most advanced AI chips Nvidia can currently export to China under existing restrictions. Reports said each approved customer could buy up to 75,000 chips through the licensing arrangement. Even with the approvals, no deliveries have taken place so far.

According to the report, Chinese firms have become more cautious after growing signals from Beijing to reduce dependence on foreign technology infrastructure. China has been increasing support for domestic AI chip development, especially through companies such as Huawei. Barclays analyst Jiong Shao said,

“Having access to Nvidia’s latest chips… is very, very critical for the Chinese players to compete on a global stage.”

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Jensen Huang’s Visit Draws Market Attention

Jensen Huang’s visit to China alongside President Trump also attracted attention from investors tracking the AI sector. Before tighter export controls, China accounted for roughly 13% of Nvidia’s total revenue. Huang previously estimated that China’s AI market alone could eventually reach $50 billion annually.

In addition, the Nvidia stock rose after reports emerged that the US had cleared H200 chip sales to several Chinese firms.

The firm also crossed a $5.5 trillion market capitalization. This rally was mostly driven by continued demand for AI infrastructure and advanced chips.

The reported approvals gave Chinese technology shares and NVIDIA stock a short-term boost. But questions around deliveries, export controls, and Beijing’s push for domestic chips still remain unresolved.

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