Nvidia Restarts AI Chip Production for China After US Green Light
Nvidia is resuming the production of its H200 artificial intelligence chips for the Chinese market following the receipt of several approvals from the US government and new orders from Chinese clients in the last two weeks, according to the source. Chief Executive Officer Jensen Huang stated that the company has resumed production following a previous halt in output due to uncertainty surrounding regulatory clearances. “We’ve been licensed for many customers in China for the H200.” We have received purchase orders from numerous customers. “And we are in the process of restarting our manufacturing,” Huang said, adding that the situation was now “different than it was two weeks ago, our supply chain is getting fired up.” Huang remarked on the US government’s position, stating that US President Donald Trump seeks to uphold the nation’s leadership in AI technology while safeguarding global competitiveness. “President Trump’s intention is that the US should have a leadership position and access to Nvidia’s best technology,” Huang stated. “However, he would also like us to compete worldwide and not concede those markets unnecessarily.”
Nvidia has been striving to re-enter the Chinese market for advanced AI chips for almost a year, influenced by the shifting trade policies towards Beijing under Trump. In a deal with the White House revealed in December 2025, Nvidia is permitted to sell H200 chips to Chinese customers, on the condition that the company allocates 25 percent of its revenue from these sales to the US government. These chips lag a generation behind the most advanced graphics processing units, which are utilized for training AI models. Nvidia, after initially resuming production post-deal, faced setbacks stemming from extended US national security evaluations of export licenses and reluctance from Chinese officials to authorize large-scale imports. This prompted the company to halt production once more.
The company has encountered challenges concerning the export of its H20 processor, a chip tailored specifically for the Chinese market. The Wall Street Journal reports that the US Commerce Department suspended exports of the H20 in April of last year, only to reverse that decision in August. However, the Chinese government advised domestic companies against purchasing the H20. The production of the H20 was ultimately ceased in late August. The recent approvals may open the door for Chinese technology leaders like Alibaba and ByteDance to access Nvidia’s AI chips, though they still need regulatory clearance from Chinese authorities for imports.
