US Confirms Nvidia Has Started Shipping H200 AI Chips to China as Export Policy Faces Fresh Scrutiny

The United States has confirmed that Nvidia has started shipping its powerful H200 artificial intelligence (AI) chips to China, marking a significant development in the ongoing technology rivalry between Washington and Beijing.

However, U.S. officials stressed that only a very small number of the advanced AI processors have been exported so far, while lawmakers continue to question the government’s export licensing decisions and broader strategy toward China.

Nvidia H200 Chip Shipments to China Have Officially Begun

A senior U.S. Commerce Department official told members of Congress that Nvidia’s H200 AI chips are now reaching Chinese customers, although exports remain extremely limited.

Jeffrey Kessler, the Under Secretary of Commerce for Industry and Security, informed the House Foreign Affairs Committee that shipments have started but described the volume as “very few.”

According to Kessler, there have only been minimal exports of the H200 chips to China since approvals were granted.

The H200 is one of Nvidia’s most advanced AI accelerators and is designed to power demanding artificial intelligence workloads, including large language models, cloud computing, and enterprise AI applications.

Several Chinese Companies Receive Approval to Buy Advanced AI Chips

The confirmation comes after reports that multiple Chinese companies have received U.S. approval to purchase advanced AI processors from Nvidia and AMD.

Among the latest approved buyers is a subsidiary of Chinese telecommunications equipment manufacturer ZTE, alongside two other Chinese firms.

Earlier reports also revealed that around ten Chinese companies had been cleared to acquire Nvidia’s H200 chips. At that time, however, deliveries had not yet started.

Major Chinese technology giants reportedly included among the approved companies were:

• Alibaba
• Tencent
• ByteDance

Kessler said the Commerce Department has already shared a confidential list of license applications and their approval status with members of Congress but declined to disclose further details publicly.

AI Chip Exports Remain at the Center of US-China Technology Tensions

Advanced AI chips have become one of the most sensitive issues in the ongoing competition between the United States and China.

Washington has imposed strict export controls over recent years to prevent China from obtaining cutting-edge semiconductor technology that could strengthen its military capabilities or accelerate strategic AI development.

Because Nvidia’s H200 chips deliver significantly more computing power than previous generations, every export license is closely examined by U.S. regulators.

The latest shipments indicate that while restrictions remain in place, the U.S. government is still allowing limited exports under carefully reviewed licensing approvals.

Lawmakers Accuse Trump Administration of Softening Export Controls

During the congressional hearing, Representative Gregory Meeks, the ranking Democrat on the House Foreign Affairs Committee, criticized the Commerce Department’s handling of export controls.

Meeks argued that no Chinese companies have been added to the U.S. export restriction list since October, making it the longest period in more than a decade without new additions.

He also accused President Donald Trump of using export controls as leverage in broader negotiations with China rather than strictly enforcing national security protections.

According to Meeks, approving licenses for advanced AI chips weakens safeguards that were originally designed to restrict China’s access to sensitive technology.

Commerce Department Defends Current Enforcement Strategy

Kessler rejected suggestions that export enforcement has become weaker.

Instead, he said the department remains focused on enforcing restrictions already placed on Chinese companies while continuing to review new applications carefully.

He indicated that maintaining compliance with existing export rules remains a top priority, even as regulators evaluate future changes.

New AI Chip Regulations Are Still Being Developed

Kessler also confirmed that additional regulations covering AI chips are still under development.

He criticized the previous Biden-era “AI diffusion rule,” arguing that it would have unnecessarily disrupted the global artificial intelligence ecosystem.

Rather than simply replacing that policy, Kessler suggested the administration intends to introduce a different regulatory framework in the future.

Although no timeline was provided, he confirmed that more regulatory action involving AI chips and artificial intelligence exports is expected.

Republican Lawmakers Raise Questions About Possible Export Loopholes

Republican Representative Bill Huizenga also questioned Commerce Department officials during the hearing.

His concerns centered on guidance issued by the department on May 31 regarding a potential loophole involving Chinese companies operating through overseas subsidiaries.

Huizenga argued that the guidance may have created uncertainty over whether subsidiaries of Chinese firms located outside mainland China could legally obtain Nvidia‘s latest Blackwell AI chips, which are even more powerful than the H200.

The issue has added another layer of debate over how effectively current export rules prevent advanced U.S. semiconductor technology from reaching Chinese organizations.