A U.S. Commerce Department official confirmed that no Nvidia H200 AI chips have yet been delivered to China despite recent approval for conditional exports.
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| Commerce Department officials told lawmakers that no H200 chips have been sold to China yet, even as the U.S. confronts concerns over smuggling and AI competition. Image: CH |
Washington, United States – February 25, 2026:
Shipments of one of the world’s most advanced artificial intelligence chips remain in limbo, underscoring the delicate balance between commercial technology exports and national security strategy in the escalating U.S.–China tech rivalry.
A senior official at the United States Department of Commerce confirmed during a congressional hearing this week that none of Nvidia’s H200 chips — currently its second-most advanced AI processor — have been sold to Chinese customers.
“My understanding is that none so far,” said David Peters, assistant secretary for export enforcement, while testifying before the House Foreign Affairs Committee.
The clarification comes after President Donald Trump’s administration last month formally approved China-bound sales of the H200 with specific conditions. The decision, shaped in part by White House AI adviser David Sacks, drew bipartisan criticism from lawmakers who fear advanced chips could strengthen China’s technological and military capabilities.
The H200 processor is designed to power high-performance AI systems, including large language models and data-intensive computing platforms. U.S. officials have argued that allowing limited exports — under strict guardrails — could discourage Chinese firms from accelerating domestic alternatives, particularly from companies such as Huawei, which faces heavy U.S. sanctions.
Supporters of conditional exports contend that cutting China off entirely may only incentivize faster development of homegrown chips, potentially eroding American dominance in advanced semiconductor design led by Nvidia and Advanced Micro Devices.
However, critics — often described as China hawks — warn that even commercially designated chips can be diverted toward military research, surveillance systems or strategic AI development. They argue that once high-performance semiconductors enter China, ensuring their end use becomes nearly impossible.
For now, shipments remain stalled amid export compliance requirements and security safeguards embedded in the licensing process. Officials indicate that built-in guardrails are still being navigated, preventing immediate transfers.
The issue is further complicated by concerns over illicit chip flows. During the same hearing, Republican Representative Bill Huizenga referenced reports that Chinese AI startup DeepSeek may have used Nvidia’s most advanced chips to train its latest AI model, potentially in violation of export controls.
Peters acknowledged the broader problem bluntly. “Yes, there is chip smuggling, it is going on,” he told lawmakers, adding that enforcement against illegal transfers is among the department’s top priorities.
The stalled H200 shipments illustrate a broader policy dilemma in Washington: how to maintain U.S. leadership in artificial intelligence while preventing sensitive technologies from enhancing strategic competitors. As AI systems become increasingly central to economic growth, defense applications and geopolitical influence, semiconductor export policy has emerged as a frontline issue in global power competition.
Whether Nvidia’s H200 chips ultimately reach Chinese buyers — and under what conditions — could signal how far the United States is willing to go in balancing trade, innovation and national security in the AI era.