Nvidia Gains Approval to Sell AI Chips to China After Trump Intervention

The long-standing dispute over U.S. Chip exports to China has seen a significant development, with President Donald Trump authorizing Nvidia to sell its advanced H200 chips to Chinese customers. This decision reverses previous restrictions and marks a potential shift in U.S.-China tech relations.

Trump Administration Approves H200 Chip Sales

After initially halting sales of advanced chips to China, President Trump reversed course in December 2025, allowing Nvidia to ship the H200 chip with a condition: the U.S. Would receive 25% of the sales revenue CNBC. The move comes after months of negotiations and uncertainty, with China initially expressing reluctance to accept the terms.

Nvidia Resumes Manufacturing and Receives Orders

Nvidia CEO Jensen Huang announced on Tuesday, March 18, 2026, that the company had received purchase orders and was restarting manufacturing to fulfill them CNBC. Huang stated that the company now has clearance from both the U.S. And Chinese governments. “We have received purchase orders, and we’re in the process of restarting our manufacturing,” he said at the company’s GTC conference in San Jose, California.

China’s Initial Hesitation and Subsequent Approval

Despite the initial approval from the Trump administration, China did not immediately grant permission for Nvidia to sell the H200 chip. Reports indicated that China was seeking favorable terms. However, Beijing ultimately approved Nvidia’s sales, allowing the company to move forward with fulfilling orders AP News.

Impact on Nvidia and the AI Industry

China previously accounted for at least one-fifth of Nvidia’s data center revenue, and the restrictions had a significant financial impact, leading to a $5.5 billion charge CNBC. The resumption of sales is expected to boost Nvidia’s revenue and strengthen its position in the global AI market. The H200 chip, while not Nvidia’s most advanced product (Blackwell and Rubin are more cutting-edge), is still a crucial component for AI development AP News.

Vetting of Customers

The agreement includes a provision for the U.S. Commerce Department to vet commercial customers in China to ensure national security concerns are addressed AP News. Nvidia applauded the decision, stating it would support domestic manufacturing and strike a balance between economic and security priorities.

Initial Approvals for Major Chinese Companies

In January 2026, reports indicated that China had given initial approval to three major companies – ByteDance, Tencent, and Alibaba – as well as AI startup DeepSeek, to import Nvidia’s chips CNBC. However, the final agreement was still being finalized at that time.

A spokesperson for the Chinese embassy in Washington stated they had no specific details on the matter and directed inquiries to the appropriate authorities.