July 16, 2025, Beijing, China: Nvidia CEO Jensen Fan speaks to journalists. During his visit to China, Huang spoke at the opening ceremony of a supply chain trade fair and met with Chinese politicians. Photo: Johannes Neudecker/dpa (Photo by Johannes Neudecker/picture Alliance via Getty Images)
Picture Alliance | Picture Alliance | Getty Images
A senior U.S. trade official said Tuesday that Nvidia’s H200 artificial intelligence chips were shipped to China and Hong Kong.
“The bottom line is that there are very few shipments contrary to the H200 license, and the equivalent is being made. The amount of chips is very small,” Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, said at a Congressional hearing.
This statement indicates that H200 shipments to China have resumed, which could further increase Nvidia’s sales. Nvidia has excluded potential revenue from AI chips in China from its forecasts since last year, and CEO Jensen Huang told CNBC in May that he told investors “not to expect anything” from China sales.
A representative for Nvidia declined to comment.
Nvidia has long sought to ship AI chips to China, one of the largest markets for AI development, but has found itself embroiled in a trade and technology war between the U.S. and Chinese governments, with most of its products subject to export restrictions to China.
In December, President Donald Trump said the US government would approve sales of H200 AI chips to China in exchange for a 25% cut. A license for the chip, which some in the administration say can be used for military purposes, was issued earlier this year.
The H200 is an older Nvidia chip from the Hopper generation, but the American company is now using faster and more powerful Blackwell chips.
Kessler said the U.S. government is evaluating companies that want H200 chips on a case-by-case basis, and applicants must meet national security requirements and undergo testing to ensure the chips are compliant.
“In some cases, we deny license applications that we receive,” Kessler said.
However, it remains unclear whether China will ultimately approve imports of large quantities of chips. Without Nvidia chips, Chinese companies will be forced to use domestic alternatives that are considered inferior for AI training.
