US Approves NVIDIA H200 Sales to 10 Chinese Companies Amid Trump-Xi Talks

The approval marks a significant turnaround in semiconductor export controls. Throughout 2025, the US had severely restricted advanced chip sales to China, but the Beijing summit and direct engagement between Trump and Xi appear to have created room for controlled commerce. The timing is striking: NVIDIA CEO Jensen Huang was physically present at the state banquet, underlining the high-level nature of these negotiations and the company's central role in the outcome.

This move stands in sharp contrast to the regulatory posture of the prior administration. Rather than a wholesale lifting of restrictions, the approval appears narrowly tailored to H200 chips sold to specific Chinese companies, suggesting a pragmatic middle ground. Market participants immediately priced in reduced geopolitical risk for semiconductor names, with NVDA gaining 20% over seven days and approaching a $6 trillion market capitalization. Broadcom (AVGO) also benefited as a key supplier to the AI buildout.

The cross-asset implications are immediate. Semiconductor supply chain stocks rally on reduced China policy uncertainty. Chinese chipmakers, however, face renewed competitive pressure if US companies gain legitimate market access. Tech names more broadly benefit from lower tail-risk premiums on US-China escalation. The energy sector faces headwinds if trade normalization reduces geopolitical risk premiums on oil prices.

Sceptical voices note that this approval could be reversed if political winds shift. The deal also highlights Washington's ongoing desire to maintain leverage over China through export control mechanisms, even as it selectively opens doors. Some see this as a temporary reprieve rather than a durable reset in tech relations. Market traders will monitor Trump administration statements and any additional approval announcements for confirmation that this is a sustained policy shift.