News
U.S. and China shift toward selective AI chip trade management as China restricts Nvidia H200 imports
Friday, March 27, 2026 at 09:24 AM
The U.S.-China AI chip conflict entered a new phase following the late 2025 decision by the U.S. to allow Nvidia H200 exports to China. While U.S. policy aims to use export profits to fund domestic innovation, the Chinese government has reportedly intervened to halt H200 imports, favoring domestic semiconductor development and security autonomy despite high demand from local AI firms. This suggests a shift toward selective management of supply chains rather than total decoupling.
Context
The U.S.-China semiconductor trade entered a complex new phase as the Trump administration moved to shift from broad restrictions to selective management. In December 2025, the U.S. issued a rule revising export policies to allow the Nvidia H200 and AMD MI325X to be shipped to China on a case-by-case basis. This policy included a 25% tariff on these exports intended to fund domestic innovation. However, by March 2026, shipments remained stalled as China began restricting imports of these chips, citing national security and a desire to bolster its own domestic industry.
This shift reflects a move toward 'selective management' where both nations weigh economic gains against security risks. During a House Foreign Affairs Committee hearing on February 24, 2026, Assistant Secretary for Export Enforcement David Peters stated, "My understanding is that none so far," in response to whether any Nvidia H200 chips had successfully reached Chinese customers. Nvidia CFO Colette Kress later confirmed in an earnings call that the company has yet to generate any revenue from the program, as the market remains fragmented by geopolitical maneuvering and strict compliance guardrails.
Sources (16)
developments in the competition for supremacy in the field ofDepartment of Commerce Revises License Review Policy ...nvda-20260125Nvidia’s Return to China Faces Major Risks. Here’s Why - BloombergChina has not yet received any Nvidia H200 chips, US official says | ReutersNvidia still hasn't sold its U.S.-approved China AI chips — and it’s worried local AI rivals could take overChina blocks Nvidia H200 AI chips that US government cleared for export – report | Nvidia | The GuardianChinese universities performing military research acquired Super Micro servers with sanctioned Nvidia AI chips — public documents reveal purchases were completed in 2025 and 2026 despite US export controls | Tom's Hardware
Related Companies
Nvidia
NVDA