US Government Approves NVDA H200 Chip Sales to 10 Chinese Firms; Jensen Huang Visits Beijing

Nvidia received explicit approval from the US government to sell H200 chips to ten Chinese companies under a new controlled licensing regime, a significant thaw in the semiconductor export restrictions that have been in place since 2023. This announcement, paired with CEO Jensen Huang's high-profile presence at the Trump-Xi state banquet in Beijing on May 14, sent NVDA shares higher and signaled that US policy on semiconductor exports to China may be shifting toward managed competition rather than outright restriction.

The H200 is Nvidia's most advanced inference chip for data centers, featuring upgraded memory and compute density compared to the H100. Approval for ten Chinese firms to purchase this chip is a material change from the prior blanket ban on advanced compute exports. While the quantities allowed per firm remain limited (and unannounced), the symbolic importance is outsized: it suggests the Trump administration views semiconductor trade as a negotiable item on the broader US-China relationship, not a red line.

Huang's appearance at the Beijing state banquet, alongside Elon Musk, Tim Cook, and other mega-cap CEOs, reinforces the narrative that US corporate leaders are re-engaging with China on favorable terms. The delegation included representatives from aerospace, defense, finance, and energy sectors, signaling a comprehensive push toward normalization. This reduces the tail risk of a total export ban on advanced chips, which had haunted NVDA shareholders throughout 2024 and early 2025.

However, skeptics note that the H200 is not Nvidia's most cutting-edge chip (that is the H100 and upcoming H300), and the distribution to ten firms is tightly controlled. Real revenue upside depends on sustained policy support and the willingness to approve sales of newer-generation chips. If the Trump administration rolls back approvals after midterm elections or faces political pressure from China hawks in Congress, NVDA could face headwinds again. The market should treat this as a tactical de-escalation, not a permanent resolution of semiconductor trade tensions.