The US is reportedly considering allowing Nvidia to export its older H200 GPUs to China as a middle-ground approach to AI chip controls.
- U.S. officials are weighing whether to permit Nvidia’s older H200 shipments after China rejected the H20.
- The review reflects concern over China’s accelerating chip progress under current restrictions.
- Lawmakers are advancing the SAFE CHIPS Act to block any easing of AI export rules.
The US Department of Commerce is reportedly preparing a plan that would permit Nvidia to sell H200 GPUs to China, chips that are roughly 18 months behind the company’s top-tier products.
The move is designed to strike a compromise between hard-line opponents of advanced chip exports and officials worried that sweeping restrictions simply push customers toward Chinese rivals, according to a report by Semafor, citing a person with knowledge of the matter.
Beijing has already rejected Nvidia’s less powerful H20 processors, prompting US officials to search for an option China might accept. Commerce Secretary Howard Lutnick is reportedly supportive of the shift.
Rethinking Earlier Export Controls
The Biden administration imposed certain restrictions on selling AI chips to China to slow the rival’s progress, but some in Washington reportedly now believe the limits have been less effective than hoped. Chinese players like DeepSeek and Alibaba continue to produce world-class models, and Huawei has made rapid advances in hardware to replace blocked US chips. Supporters of the controls argue they still bought US firms time to extend their lead in global markets, Semafor noted.
Why The H200 Is Back On The Table
Washington initially tried to allow exports of the cut-down H20, but China’s refusal created an opening for Huawei and forced the US to revisit its approach. The H200, while older, is viewed as powerful enough to appeal to China yet still compliant with US national-security thresholds. Allowing its export would reopen access to the world’s largest AI chip market and help keep US technology as the global standard.
Nvidia Intensifies Engagement In Washington
The debate follows Nvidia CEO Jensen Huang’s recent meeting with U.S. President Donald Trump and discussions with lawmakers about export policy. Huang has warned that fragmented state-level rules could slow US AI development. In a podcast interview last week, he described Trump as an “incredibly good listener” and said Commerce Secretary Howard Lutnick assured him the administration would remain accessible to industry leaders. Huang also played down talk of a tech race, arguing the US has always competed through innovation.
Legislative Pushback
A bipartisan group of senators has introduced the SAFE CHIPS Act, which would block the administration from easing AI chip export rules, including H200 sales, for 30 months. The bill would require the Commerce Department to deny license requests from buyers in China, Russia, Iran or North Korea for more advanced AI chips than they currently receive and to notify Congress of any future rule changes.
Nvidia’s China View
Huang has said Nvidia views China as a “bonus opportunity” given strong worldwide demand and downplayed competition from Google’s next-generation TPUs, pointing to the breadth of Nvidia’s CUDA ecosystem. The company recently acquired a $2 billion stake in Synopsys to expand GPU-powered engineering and simulation tools across industries.
Stocktwits Traders Question China’s Appetite For Nvidia’s H200s
On Stocktwits, retail sentiment for Nvidia was ‘bearish’ amid ‘low’ message volume.
One user noted that the next hurdle is convincing China to buy the chips at all.
Another user said that the development aligns with recent comments from both the Trump administration and Chinese officials about seeking a more balanced trade arrangement.
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