U.S. confirms small Nvidia H200 shipments to China, licenses restart

Under Secretary of Commerce for Industry and Security Jeffrey Kessler confirmed Tuesday at a congressional hearing that "very few" Nvidia H200 artificial intelligence chips have been shipped to China and Hong Kong under U.S. export licenses. The remark signals a restart of H200 shipments after the Trump administration approved case-by-case export reviews in January 2026, replacing the prior presumption of denial. The H200 is an older-generation Hopper-class chip; Nvidia's current focus is Blackwell, which remains under strict controls.

The shipments occur under conditions imposed by the U.S. government: the 25% tariff negotiated last December, third-party testing verification, and a 50% volume cap limiting China purchases to no more than half of total H200 sales to U.S. customers. Kessler noted that license denials still occur when national security requirements are not met. However, Beijing has been slow to approve imports despite U.S. clearance—sources indicate Chinese regulators found the U.S. conditions too restrictive and preferred domestic AI accelerators.

For Nvidia and the infrastructure market, this is tactically significant but strategically limited. China once accounted for 13% of Nvidia revenue; CEO Jensen Huang previously told investors to "expect nothing" from China sales. At $27,000 per chip, even a small flow helps offset geopolitical headwinds. However, the volume cap, tariffs, and Beijing's hesitation mean H200 sales are unlikely to significantly move Nvidia's China revenue target near term. The real watch point is whether Blackwell approvals emerge—currently under presumption of denial, and politically contentious.