US Approves H200 Chip Sales to Chinese Firms Amid Stalled Deliveries

The United States has granted approval for approximately ten Chinese technology companies, including Alibaba, Tencent, ByteDance, and JD.com, to purchase Nvidia’s H200 artificial intelligence chips. Additionally, distributors such as Lenovo and Foxconn have received clearance to facilitate these transactions, with each approved customer permitted to buy up to 75,000 units under current licensing terms. Despite this regulatory green light from the U.S. Commerce Department, no deliveries have occurred, leaving significant deals in limbo. Reports indicate that Chinese firms have retreated from finalizing purchases following guidance from Beijing, which is increasingly pressuring companies to block or strictly vet such orders. This hesitation aligns with China’s strategic push to bolster its domestic semiconductor industry rather than rely on foreign technology. Nvidia CEO Jensen Huang is currently seeking a breakthrough in the region, aiming to capture part of an AI market estimated at $50 billion. Previously, Nvidia held a dominant 95% share of China’s advanced chip market, contributing 13% to its total revenue. The standoff highlights the complex interplay between U.S. export controls and China’s industrial self-sufficiency goals, creating uncertainty for major tech stakeholders on both sides.