Us Commerce Secretary Says Nvidia Has Not Sold Any H200 Ai Gpus To China

At a glance:

• Us commerce secretary states no H200 Ai Gpus sold to Chinese companies
• Beijing blocks imports to prioritize domestic semiconductor firms
• Nvidia sees market share in China fall below 60 percent

What Happened

It has been four months since President Donald Trump lifted the ban on Nvidia selling its H200 AI chips to China, yet Commerce Department Secretary Howard Lutnick says the company has not sold a single unit to Chinese buyers. According to Reuters, Lutnick stated that Beijing is making it difficult for Chinese companies to obtain permission to import these chips, as the Chinese Communist Party focuses on bolstering its domestic semiconductor industry. Major Chinese firms such as Alibaba and ByteDance were reportedly ready to order hundreds of thousands of Nvidia’s AI GPUs, but customs officials have been directed to block H200 imports.

Policy And Market Impact

Beijing has essentially allowed only universities and R&D labs to acquire the H200 chips, signaling a broader push to favor locally manufactured alternatives from Huawei, Alibaba, Baidu, Cambricon, Moore Threads, and other domestic players. This move aligns with China’s long-term strategy to reduce reliance on foreign advanced semiconductor technology, a trend that has intensified amid shifting U.S. export controls. The restrictions have not eliminated demand, as some firms are reportedly considering purchasing the chips through unofficial channels, highlighting the gap between policy intent and market realities.

Nvidia’S Position

Nvidia CEO Jensen Huang has expressed frustration with the situation, noting that the company’s market share in China has dropped below 60 percent, a steep decline from the 95 percent share held before the sanctions. During a heated discussion on a podcast with Dwarkesh Patel, Huang argued against a total ban on AI chip exports to China, stating that such measures hurt Chinese researchers and benefit competitors. He emphasized that U.S. manufacturers should not be disadvantaged while Chinese AI development continues on its own tech stack.

Competitive Landscape And Future Outlook

Despite the import barriers, demand for H200 chips remains strong in China, especially as the country awaits the rollout of Nvidia’s newer Blackwell and upcoming Vera Rubin AI GPUs. The current environment creates incentives for both domestic innovation and gray-market procurement, complicating supply chain planning for global firms. As China accelerates its local chip production, the balance between policy goals and commercial demand will shape the next phase of the semiconductor rivalry.

Industry Reactions

Industry observers note that the situation underscores the fragility of global tech supply chains when geopolitical priorities override commercial interests. Companies across the semiconductor value chain are closely watching how enforcement and licensing evolve, as these decisions influence investment and R&D strategies. The tension between national security and open-market principles is likely to persist as a defining theme for the AI hardware sector.