Nvidia’s $50B China Dream Stalls Under U.S. National Security Review

Nearly two months after President Donald Trump gave the initial green light for exports, Nvidia’s H200 artificial intelligence chips remain caught in a regulatory bottleneck. According to a Financial Times report, the shipping of these advanced processors to China is currently stalled as a comprehensive U.S. national security review continues. This delay has created a period of significant uncertainty for Chinese buyers, who are reportedly hesitant to commit to orders. These potential customers are waiting for definitive confirmation on whether export licenses will be granted and what specific stipulations or restrictions might be attached to the hardware.

While the Department of Commerce relaxed certain export barriers on the H200 chips earlier this year, the process is far from streamlined. Any potential sale now requires a rigorous interagency review involving the departments of State, Defense, and Energy. While the Commerce Department has reportedly finished its technical assessment, the State Department is allegedly advocating for more stringent safeguards. Their goal is to prevent the technology from being repurposed in ways that could potentially compromise American security interests. This internal friction within the U.S. government suggests that while the door is open, the threshold for entry remains exceptionally high.

Nvidia’s leadership is maintaining a public stance of cautious optimism. CEO Jensen Huang recently mentioned that the licensing details are being finalized and expressed hope that the Chinese market will soon be accessible for their high-performance AI hardware. This development follows a notable policy shift within China; despite efforts to bolster its own domestic chip industry, Beijing recently authorized the first wave of H200 imports. This move indicates that China is currently prioritizing the immediate acquisition of top-tier AI capabilities to sustain its tech sector, even as it navigates the complex and shifting landscape of international trade regulations.