H200 Chip Sales to China Remain Blocked, Commerce Secretary Says
Nvidia has not yet sold its H200 artificial intelligence chips to Chinese companies, Commerce Secretary Howard Lutnick said Wednesday. Chinese authorities have prevented domestic firms from purchasing the chips, Lutnick told a Senate hearing.
"The Chinese central government has not let them, as of yet, buy the chips, because they're trying to keep their investment focused on their own domestic industry," Lutnick said.
The Trump Administration's January Green Light
The Trump administration approved H200 sales to China in January, subject to certain conditions. The decision sparked concern among lawmakers who worry Beijing will use advanced chips to strengthen its military capabilities.
Disagreements over sale terms on both sides have prevented shipments from moving forward, according to sources familiar with the matter.
What This Means for China Hawks
The continued delay aligns with the preferences of China hardliners in Congress who oppose the sales entirely. They reject administration arguments that allowing H200 exports discourages Chinese competitors like Huawei from accelerating their own chip development.
Lutnick downplayed his own role in China policy, describing the relationship as "very complex" and crediting President Donald Trump, Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer with leading negotiations.
The Affiliates Rule Question
Lutnick also signaled the administration may not reimpose a rule restricting U.S. technology exports to thousands of Chinese companies. The regulation, known as the affiliates rule, was delayed for one year last November during trade negotiations.
"I agree that the affiliates rule is a smart thing for the United States of America to consider, but it is part of the balance of that full trade agreement," Lutnick said.
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