U.S. Opens Interagency Review That Could Allow Nvidia H200 Sales to China

The Commerce Department has transmitted license applications seeking approval to export Nvidia’s H200 artificial intelligence accelerator chips to China to the State Department, the Defense Department and the Energy Department for interagency review, sources familiar with the matter said. Under U.S. export rules, each agency now has up to 30 days to weigh in, setting a tight clock on a decision that could yield the first authorized shipments of the H200 series to Chinese customers.

The H200 is described by industry analysts as Nvidia’s second most powerful AI accelerator and by some analysts as more capable than any domestically produced Chinese alternatives. Approval would mark a significant moment in the broader contest over advanced computing hardware, potentially accelerating Chinese research and development in commercial and military applications while generating sizable commercial activity for Nvidia and its supply chain.

Chinese demand for high end accelerators has outstripped Nvidia’s current production capacity, according to industry sources, with large prospective orders reported from major technology firms including ByteDance and Alibaba. The commercial pressure to permit exports has collided with concern among U.S. policymakers who worry the chips could substantially boost Beijing’s AI capabilities and erode American advantages in critical technologies.

A White House spokesperson said, "the Trump administration is committed to ensuring the dominance of the American tech stack, without compromising on national security." At the State Department, Under Secretary of State for Economic Affairs Jacob Helberg emphasized the balance the government is trying to strike, saying, "Winning the AI race requires meeting two conditions: the best innovation and the most diffusion." Helberg confirmed that the State Department routinely participates in interagency reviews for advanced chip export licenses, including those for the H200 series.

The referral follows public statements by President Donald Trump earlier this month in which he indicated he would allow sales of Nvidia H200 chips to China while imposing a 25 percent fee on such exports. That proposal has framed the debate in Washington as officials weigh whether limited commercial sales can coexist with measures meant to blunt strategic risk.

If the agencies fail to reach a consensus during the review period, the ultimate decision could fall to the president. That prospect has intensified political scrutiny, drawing criticism from lawmakers and security specialists across the political spectrum who argue that advanced accelerators, even when sold under strict conditions, may be repurposed to enhance Chinese military systems or sensitive AI applications.

For Nvidia and its partners, authorization would open a lucrative market and relieve some pressure on production allocation decisions. For U.S. national security planners, the review is a test of export control policy as Washington seeks to maintain technological advantage while managing global commerce. The review is now underway and no final authorization or shipments have been reported.