A U.S. trade official testified on Tuesday that very few of Nvidia's H200 artificial intelligence chips have been shipped to China and Hong Kong. Under Secretary of Commerce for Industry and Security Jeffery Kessler stated at a congressional hearing that 'very few shipments against licenses for H200s and equivalents have taken place. It's a very small quantity of chips.' The testimony signals that H200 shipments to China have restarted despite ongoing export restrictions between Washington and Beijing. Nvidia has long sought access to China, one of the largest markets for AI development, but has been caught in a technology trade war with most of its products under U.S. export controls. The company has excluded potential Chinese AI chip revenue from its forecasts since last year.
U.S. Government Approved H200 Export Licenses Earlier This Year
Kessler explained that the U.S. government assesses companies seeking H200 chips on a case-by-case basis. Applicants must meet national security requirements and submit to inspections to ensure chip compliance. 'There are cases where we deny the license applications we receive,' Kessler said. Licenses for the chips were issued earlier this year following President Donald Trump's announcement in December that the U.S. government would approve China sales of the H200 AI chip in exchange for a 25% cut. The H200 is an older Nvidia chip in the Hopper generation, while American companies currently use faster and more powerful Blackwell chips.
Trump Announced 25% Revenue Cut Requirement in December
In December, President Donald Trump stated that the U.S. government would approve China sales of the H200 AI chip in exchange for a 25% cut. Some in the administration say the chips can be used for military purposes. The announcement preceded the license issuance earlier this year. It remains unclear whether China will ultimately approve the import of large quantities of the chips. Without Nvidia chips, Chinese firms will be forced to use domestic alternatives, which are considered inferior for AI training.
Nvidia CEO Told Investors to Expect Nothing From Chinese Sales
Nvidia CEO Jensen Huang told investors on CNBC in May to 'expect nothing' from Chinese sales. Since last year, Nvidia has excluded any potential Chinese AI chip revenue from its forecasts. An Nvidia representative declined to comment on the congressional testimony. The remark about restarted H200 shipments could potentially boost Nvidia's sales even higher, though the company maintains its conservative public stance on Chinese revenue expectations.
FAQ
What did the U.S. trade official say about Nvidia H200 chip shipments to China?
Under Secretary of Commerce for Industry and Security Jeffery Kessler testified on Tuesday at a congressional hearing that 'very few shipments against licenses for H200s and equivalents have taken place. It's a very small quantity of chips.' This confirms that some H200 shipments to China and Hong Kong have restarted, though in limited quantities.
What requirements did Trump announce for H200 chip sales to China?
In December, President Donald Trump stated that the U.S. government would approve China sales of the H200 AI chip in exchange for a 25% cut. The U.S. government assesses companies seeking these chips on a case-by-case basis, requiring applicants to meet national security requirements and submit to inspections to ensure compliance.
