US clears path for Nvidia’s H200 AI chip sales to China

The US government has updated export rules, allowing Nvidia to apply for permission to sell its H200 AI chips to Chinese buyers.

The new regulation, published by the Commerce Department, requires each export application to China to be reviewed individually, replacing a previous policy that presumed denial.

Nvidia and AMD, which is also seeking approval for its MI325X chip, must certify that the sales will not cause a processor shortage in the US and that production for China will not reduce US supply.

Companies can ship no more than 50% of their US market output to China, and must implement strict “Know Your Customer” checks to prevent unauthorized use.

Chips must also undergo third-party testing in the US.

The H200 is currently Nvidia’s most advanced AI chip approved for export to China, following restrictions on even more powerful processors.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Export license approval stays uncertain after the policy shift

Commerce moved from presumption of denial to case-by-case review, yet approvals are not assured.
Since the 2022 controls, approval rates and processing times are not public. Nvidia and AMD face guesswork on licenses.
The rule requires independent third-party testing in US labs. The National Voluntary Laboratory Accreditation Program (NVLAP) is a NIST program accrediting testing and calibration laboratories to ISO/IEC 17025:2017, the international benchmark for lab competence 1. Large-scale AI chip testing capacity remains unclear.
A license would still face the 50% cap on US market output, which ties China access to US demand.

The 50% export cap shifts competition for US-focused chipmakers

The 50% limit can help smaller US-focused suppliers capture domestic share that Nvidia and AMD cannot ship abroad.
Cloud providers and AI infrastructure investors gain steadier US supply, which can speed buildout plans.

Compliance work opens near-term business

Mandatory US third-party testing lifts demand for accredited semiconductor labs. NVLAP accredits to ISO/IEC 17025:2017 1, and an industry list names 26 compliance testing labs 2, though only a subset hold that status.
Know Your Customer requirements raise demand for verification tools and advisors. Element U.S. Space & Defense holds American Association for Laboratory Accreditation (A2LA) accreditations across electrical and mechanical testing, plus an NVLAP accreditation for personal body armor testing 3.