China‑US Chip Deal Stalled: Why Nvidia’s H200 Is Still Unpacked

"Nvidia’s powerful H200 AI chip has just cleared U. S. export rules for about ten Chinese companies, but no chips have been shipped yet. The deal sits in a tense spot where both countries want to benefit but also protect their own tech goals. The approval came after the U. S. Commerce Department loosened some restrictions, allowing firms like Alibaba, Tencent and JD. com to buy up to 75, 000 chips each. Lenovo and Foxconn can also act as middlemen. Despite the green light, Chinese buyers have pulled back. Beijing’s government is wary that importing these chips could hurt its plan to build a strong domestic AI industry. The Chinese Ministry of Industry and Information Technology has not yet confirmed any orders, and officials say they are waiting for clear U. S. rules on security and usage. Nvidia’s CEO, Jensen Huang, is hoping a trip to Beijing with President Trump will unlock the sale. He told Chinese media that better ties could help both sides cooperate on technology, but he also warned that export controls are eroding Nvidia’s market share in China.The U. S. side added another layer: the sale must route through American territory so that a 25 % revenue share can be collected. This requirement raises concerns in Beijing about potential tampering or hidden vulnerabilities. The whole situation highlights the fragile nature of tech trade between the two giants. While China still lags behind Nvidia in chip performance, Chinese firms are increasingly turning to local makers like Huawei for AI hardware. The delay of the H200 deal gives China more time to develop its own chips and limits Nvidia’s influence in one of its biggest markets. If the deal finally goes through, it could shift the balance: fewer U. S. chips in China might mean a smaller advantage for American AI companies, while boosting Chinese self‑reliance. For now, the H200 remains a symbol of how export rules and national strategy can keep even high‑tech products on hold. "