Shipments of Nvidia's H200 artificial intelligence chips to China have not yet begun even after U.S. authorities reportedly approved purchases by around 10 Chinese companies, according to multiple reports.
The approved buyers include major Chinese technology firms such as Alibaba, Tencent, ByteDance and JD.com, along with distributors like Lenovo and Foxconn, according to reporting attributed to Reuters. Each approved company is permitted to purchase up to 75,000 H200 chips under U.S. licensing terms, but no confirmed shipments have been completed so far.
Nvidia CEO Jensen Huang has been seeking progress on the issue during President Donald Trump's Beijing summit. He was not initially included in a White House delegation to China but later joined after receiving an invitation from Trump, a source familiar with the matter told CNBC.
The approvals come with strict conditions. U.S. Commerce Department rules introduced in January require Chinese buyers to show they have adequate security safeguards in place and confirm the chips will not be used for military purposes, according to reporting linked to policy details referenced in the Congressional Research Service report CRS R48642. Nvidia is also required to certify inventory availability within the United States before any export process proceeds.
A separate financial structure tied to the arrangement adds further complexity. Reports indicate the deal includes a mechanism under which 25% of revenue from chip sales would flow to the United States, requiring shipments to pass through U.S. territory. The structure has been described as a workaround within existing export control law rather than a direct export fee system, according to Sunday Guardian Live.
Beijing has raised concerns about the arrangement, particularly over potential security vulnerabilities and dependency risks tied to advanced foreign semiconductor infrastructure. Chinese regulators have also stepped up scrutiny following new supply chain security guidelines issued by the State Council, which have intensified efforts to reduce reliance on external technology in critical systems, Modern Diplomacy reported.
The broader context reflects ongoing competition between the U.S. and China over dominance in artificial intelligence and advanced computing hardware. Nvidia, the world's most valuable chipmaker, has been caught between tightening U.S. export controls and sustained demand from China, once a major market for its advanced processors. Before restrictions expanded, China accounted for roughly 13% of Nvidia's revenue, and the country was considered a key driver of future AI chip demand.
Multiple IBT reports have highlighted how earlier U.S. restrictions reshaped Nvidia's market position in China, where it previously held a dominant share in advanced chips before curbs limited access.
The ongoing delay in shipments comes as the broader U.S.-China technology rivalry continues to affect global supply chains, particularly in semiconductors, AI infrastructure and cloud computing systems. Analysts cited by News.az have pointed to repeated regulatory shifts in both countries that have left even approved transactions subject to extended review and compliance procedures.
