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US official says shipments of Nvidia H200 chips to China have begun

Daniel Nenni

Founder
Staff member
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Shipments of Nvidia’s H200 artificial-intelligence chips to China and Hong Kong have started, although only a very small number have been delivered so far, a senior U.S. Commerce Department official told Congress on Tuesday.

Jeffrey Kessler, the department’s undersecretary for industry and security, said the government had approved licenses allowing roughly 10 Chinese companies to purchase the processors. He described the volume shipped to date as “trivial,” underscoring that the transactions remain limited and closely scrutinized.

The H200 is among Nvidia’s most powerful AI chips and is used to train and operate advanced artificial-intelligence models. Washington has restricted China’s access to high-end semiconductors since 2022, arguing that the technology could strengthen Beijing’s military and surveillance capabilities.

The decision to permit some H200 exports has drawn criticism from lawmakers concerned that the Trump administration is weakening safeguards. Representative Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, questioned why the Commerce Department had not recently added more Chinese companies to its Entity List, which restricts access to American technology.

Kessler defended the administration’s enforcement strategy, saying export controls must be applied carefully and effectively. The limited shipments mark a notable change from earlier in 2026, when U.S. officials said no H200 chips had yet reached Chinese customers.

The development highlights Washington’s continuing effort to balance national-security concerns with the commercial interests of American chipmakers. Nvidia has faced significant uncertainty in China, once a major market, as both U.S. restrictions and Chinese regulatory decisions have complicated sales of advanced processors.

 
It carries positive implications for both China and the United States. In addition, it will support the sound development of Chinese GPU chip enterprises.
 
In fact, local GPU vendors are quite frustrated, as this development has significantly impacted their stock prices.

Good point. How do the Chinese GPU makers compete with Nvidia? Are they getting close in performance? Last I had heard that they were half the speed of Nvidia.
 
Good point. How do the Chinese GPU makers compete with Nvidia? Are they getting close in performance? Last I had heard that they were half the speed of Nvidia.
There are plenty of reports and differing viewpoints on the situation. I don't think we can rule out the possibility of another "DeepSeek moment" emerging in the near future.

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There are plenty of reports and differing viewpoints on the situation. I don't think we can rule out the possibility of another "DeepSeek moment" emerging in the near future.

China's AI labs race to build custom AI chips while ASICs threaten Nvidia's dominance
Wednesday 8 July 2026
China's leading AI model developers are moving deeper into custom chip design, a shift that could reshape the country's AI hardware market as inference demand rises, US export controls tighten access to Nvidia GPUs, and...

Huawei's Ascend AI chips target South Korea in new Nvidia challenge
Friday 3 July 2026
Huawei is reportedly preparing to launch its AI chips in South Korea for the first time in the fourth quarter of 2026, as rising demand for AI infrastructure opens a new...

ByteDance's reported AI chip orders mark breakthrough for Chinese GPU maker Iluvatar CoreX
Thursday 25 June 2026
ByteDance's reported plan to purchase at least 50,000 AI inference chips from Shanghai-based GPU developer Iluvatar CoreX could become one of the most significant commercial wins yet for China's domestic AI chip...
recent stock price of a typical local GPU vendor.
Screenshot 2026-07-15 100201.png
 

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