NVIDIA cleared to sell H200 chips to approved Chinese customers under 25% tariff

The U.S. administration has approved sales of NVIDIA’s H200 AI accelerators to vetted commercial customers in China, while keeping the newest, highest‑end chips (Blackwell/Rubin family) off limits. The Commerce Department will finalize the vetting process and a 25% tariff will apply to those shipments, according to official comments and public statements.

President Trump announced the decision on social media and said Chinese President Xi was informed. The move reportedly aims to avoid NVIDIA losing market share to local competitors such as Huawei, while trying to protect national security by excluding the latest and most powerful models.

Key facts

• Allowed device: NVIDIA H200 — approved for sale to vetted commercial customers in China.
• Restricted devices: Latest Blackwell/Rubin chips (e.g., B200) are not included.
• Tariff: A 25% tariff will be collected on approved sales; earlier public suggestions mentioned 15%.
• Vetting: The Department of Commerce will approve and vet eligible buyers.

Why this matters

The H200 is a significantly more capable chip than the H20 that was previously exportable to China: reporting indicates the H200 can be roughly six times faster than the H20 for some workloads, and NVIDIA’s Blackwell B200 can outperform the H200 by an order of magnitude in specific tasks. Allowing the H200 into China — even under vetting and tariffs — shifts the balance between commercial interests and security concerns.

Reactions and risks

• Political pushback: Several Democratic senators criticized the decision as a national‑security failure that could accelerate China’s AI capabilities.
• Industry stance: NVIDIA supported the measured approach, saying approved commercial sales vetted by Commerce strike a balance between business needs and national security.
• Security concerns: Lawmakers warned about technology transfer and potential replication by Chinese firms; past reports also suggest some high‑end chips have reached China via illicit channels.

What to watch next

• Details of the Commerce Department’s vetting process, eligible buyers and shipment volumes.
• Whether China’s companies (including Huawei) actually purchase H200s given government guidance and self‑reliance goals.
• Responses from other chipmakers (AMD, Intel) and any parallel policy decisions affecting exports.
• Longer‑term effects on global AI competition, supply chains and technology leakage risks.

For reporting and initial coverage, see the original article: Engadget coverage.

Discussion: Does allowing vetted H200 sales to China protect U.S. commercial interests without compromising security — or does it risk accelerating China’s AI capabilities? What safeguards would you expect in the vetting process?