By Elsie Kamsiyochi
The United States has quietly approved the sale of one of Nvidia’s most advanced artificial intelligence chips to around 10 major Chinese companies, signaling a possible easing of tensions in the fierce technology rivalry between Washington and Beijing.
Yet despite the green light, not a single chip has been delivered, leaving one of the most closely watched tech deals in global business frozen in uncertainty.
At the center of the standoff is the H200, Nvidia’s second-most powerful AI processor, considered critical for training and operating advanced artificial intelligence systems. According to sources familiar with the matter, the U.S. government has authorized several major Chinese firms—including , , , and —to purchase the coveted chips. However, months after approval, shipments have yet to begin.
The delay comes at a critical moment for Nvidia and its chief executive, , who is reportedly seeking a breakthrough during his visit to China alongside U.S. President . Huang reportedly joined Trump’s trip to Beijing after receiving an invitation from the president, fueling speculation that discussions with Chinese President could revive stalled negotiations surrounding the H200 chips.
A High-Stakes Deal in the U.S.-China Tech War
The situation highlights the growing complexity of the technological competition between the world’s two largest economies. Even approved business deals are now becoming entangled in geopolitical tensions, national security concerns, and economic rivalry.
Before Washington tightened export restrictions on advanced semiconductors, Nvidia dominated China’s market for high-performance AI chips, reportedly controlling about 95% of the sector. China was once responsible for roughly 13% of Nvidia’s overall revenue, making it one of the company’s most important overseas markets.
Huang has previously estimated China’s AI market alone could be worth nearly $50 billion this year, underscoring why Nvidia continues to push for renewed access despite mounting political scrutiny in the United States.
Which Companies Have Been Approved?
Sources say the U.S. Commerce Department has approved roughly 10 Chinese companies to buy Nvidia’s H200 processors. Among those reportedly cleared are major Chinese tech giants such as Alibaba, Tencent, ByteDance, and JD.com.
In addition, manufacturing and technology partners including and have reportedly been authorized to distribute the chips in China. Under the licensing arrangement, approved customers can either purchase directly from Nvidia or use approved intermediaries, with limits reportedly reaching up to 75,000 chips per customer.
Lenovo publicly confirmed that it is among the companies permitted to distribute H200 chips in China under Nvidia’s export licensing framework.
Despite these approvals, however, the business remains stuck in limbo.
Why Are No Chips Being Delivered?
The biggest obstacle appears to be Beijing itself.
Although Washington has signed off on the transactions, Chinese companies are reportedly hesitating to finalize purchases after receiving guidance from authorities in Beijing. China’s leadership has intensified efforts to reduce dependence on foreign technology, especially in sectors tied to national security and artificial intelligence.
The hesitation reflects a broader strategic shift. Beijing increasingly wants domestic companies to rely on homegrown semiconductor technology rather than American-made processors.
Chinese firms are already promoting alternatives developed by domestic manufacturers, especially , whose AI chips are becoming increasingly important in China’s push for technological independence. Chinese AI startup DeepSeek has also highlighted its growing use of domestic chip technology, signaling that local alternatives may slowly be gaining traction.
For Nvidia, the situation is becoming increasingly difficult. Huang has repeatedly warned that strict export controls are damaging the company’s position in China and allowing domestic rivals to gain ground. He recently suggested Nvidia’s market share in China’s AI accelerator market has effectively dropped to nearly zero.
Complex Conditions on Both Sides
The stalled sales are not simply the result of politics—they are also trapped in a maze of regulations.
Under U.S. export rules introduced earlier this year, Chinese buyers must prove they have strong security systems in place and guarantee the chips will not be used for military applications. Nvidia must also demonstrate that sufficient chip inventory remains inside the United States.
Complicating matters further, the Trump administration reportedly negotiated an unusual revenue-sharing arrangement in which the U.S. government would receive 25% of the proceeds from approved chip sales. To satisfy legal requirements, the chips must reportedly move through U.S. territory before being shipped to China.
This arrangement has reportedly raised concerns in Beijing, where officials fear imported technology could contain hidden vulnerabilities or security risks. At the same time, China has introduced stricter supply-chain security rules aimed at identifying and reducing foreign technological dependencies across sensitive infrastructure.
Critics Warn of Strategic Risks
Not everyone in Washington supports reopening chip sales to China.
Some American policymakers argue that allowing Nvidia to resume business with Chinese firms could weaken America’s lead in artificial intelligence. Critics warn that every advanced chip sold abroad could strengthen China’s AI capabilities while reducing supply for American companies.
According to some U.S. analysts, the debate reflects a larger question facing policymakers: whether maintaining economic ties with China helps preserve American influence—or whether it accelerates the rise of a strategic competitor.
For now, Nvidia finds itself trapped between two superpowers. The company has secured approval to sell its prized H200 chips, but with no deliveries completed and political pressure mounting on both sides, the future of the deal remains deeply uncertain. Whether Huang’s high-profile visit to Beijing can unlock progress may determine not only Nvidia’s future in China, but also the next chapter in the global AI race.
Source Reuters
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