Nvidia’s H200 AI Chip Sales to China: Geopolitical Tensions and Market Implications
Nvidia has secured approval from the TRUMP administration to resume sales of its H200 AI chips to China, albeit with a 25% tariff levied by the U.S. government. The move reverses prior export bans but arrives amid Beijing's push for semiconductor self-sufficiency, casting doubt on Chinese demand for foreign chips.
Chinese tech giants like Huawei, Alibaba, and Baidu have aggressively developed domestic alternatives while stockpiling older Nvidia GPUs. The H200's performance edge may still attract buyers, but supply chain bottlenecks and political risks cloud its commercial prospects. Critics warn the decision could inadvertently strengthen China's military AI capabilities.