US Approves NVDA H200 Sales to 10 Chinese Companies; Huang in Beijing

On May 14, 2026, two pieces of news converged to shift semiconductor export sentiment. First, the US government approved NVIDIA to sell its H200 chips to ten Chinese companies, a material softening of the blanket restrictions imposed in late 2024. Second, Jensen Huang, NVIDIA's CEO, appeared in Beijing at a state banquet hosting President Trump and President Xi Jinping, alongside other tech titans including Elon Musk and Tim Cook. Market participants interpreted this dual signal as a thaw in US-China chip competition rhetoric and a potential pivot toward selective dealmaking under the Trump administration.

The H200 approval is significant for two reasons. First, it represents the highest-performance GPU permitted for export to China since the 2024 crackdown; H100s had been restricted. Second, the list of ten approved recipients likely includes leading AI-focused Chinese firms pursuing large language models and inference infrastructure. NVIDIA's stock rallied on the news, extending a 20 percent rally over the prior seven days that had pushed the company toward a $6 trillion market capitalization. Huang's presence at the state dinner appeared to signal direct engagement between tech leadership and the Trump-Xi talks on trade and AI collaboration.

The narrative carries cross-asset implications. Semiconductor supply-chain firms (Broadcom, ASML) could see improved visibility to Chinese demand if the export regime stabilizes. Chinese AI chipmakers and cloud providers gain immediate access to best-in-class hardware rather than relying on domestic alternatives or grey-market channels. Conversely, US chipmakers that had benefited from the export ban scarcity premium (such as AMD's sales into non-sanctioned jurisdictions) may face new competition. FX markets may respond if the bilateral talks produce broader trade accords; CNY weakness from sanctions fears could reverse if a comprehensive deal emerges.

The critical risk is that this thaw is tactical and temporary. Previous summits between US and China have produced limited follow-through on tech sector accords. If the Trump administration reverses course post-deal or imposes new restrictions on other chip categories, the narrative flips bearish for NVDA and semiconductor exporters. Additionally, the approval of ten companies is not an unlimited export license; each transaction still faces scrutiny, limiting the upside impact on NVIDIA's China revenue relative to prior-year levels.