Nvidia’s powerful H200 AI chips are always in high demand around the world and meanwhile were also supposed to be supplied to the Chinese tech industry, but US officials claim that Nvidia has not yet sold AI chips to China.
US Commerce Department Secretary Howard Lutnick informed on Wednesday that Nvidia artificial intelligence chips have not yet been sold to Chinese companies and cited the difficulties those companies face in getting permission from the Chinese government.
The Trump administration in January gave the formal greenlight to the sale of Nvidia’s H200 chips to China with some conditions, raising deep concerns among China’s supporters in Washington who fear Beijing will use the technology to supercharge its military.
But sources said shipments of the chips have been disrupted due to disagreements over sales terms in both China and the US.
Asked at a Senate hearing about H200 sales to China, Lutnick said, “The Chinese central government hasn’t given them permission to buy the chips yet, because they’re trying to keep their investment focused on their domestic industry.”
“We haven’t sold them the chips yet,” he said.
Continued delays in chip sales will be welcomed by China hawks in the US, who reject the Trump administration’s arguments that such sales discourage Chinese rivals – such as heavily sanctioned Huawei – from redoubling efforts to catch up with American AI chip designers.
But Lutnick, citing the complexity of US-China relations and the balancing act it requires, appeared to back down from a pledge in November to reimpose a rule that would restrict US tech exports to thousands of Chinese companies.
The regulation, known as the companion rule, was delayed for a year last November as part of trade talks with China.
“I think the cooperative rules are a smart thing for the United States to consider, but it’s part of the balance of that overall trade agreement,” Lutnick said.
Lutnick further downplayed his role on China issues, saying that America’s “very complex” trade relationship with China was led by President Donald Trump as well as a team that included Treasury Secretary Scott Besant and U.S. Trade Representative Jameson Greer.
“I focus on the rest of the world,” he said.
Notably, Nvidia has not yet provided any statement or clarification on this matter.
