Nvidia China chip deal stalls

Nvidia’s effort to reopen advanced AI chip sales to China has run into a second barrier after winning U.S. approval. Reuters reported on May 14 that Washington had cleared about 10 Chinese firms to buy Nvidia’s H200 chip, but no deliveries had started. (logos-pres.md) A May 18 report by Logos Press said the broader arrangement had since stalled over U.S. licensing terms and resistance from Chinese authorities. The dispute centers on Nvidia’s H200, which the company describes as a data-center GPU for generative AI and high-performance computing. Nvidia says the chip is “now available,” underscoring that the issue is not product readiness but whether the trade can proceed under export rules and Chinese acceptance. (msn.com) Jensen Huang, Nvidia’s chief executive, traveled to Beijing this week as the company sought to salvage the opening. Reuters said Huang was looking for a breakthrough after the U.S. approvals, while other reports said he joined President Donald Trump’s China trip at the last minute. (msn.com) ### Which chip sale is stuck? The H200 is Nvidia’s second-most powerful AI chip, according to Reuters, and the U.S. had cleared around 10 Chinese firms to buy it as of May 14. Reuters said not a single delivery had been made despite those approvals. (nvidia.com) Nvidia says the H200 uses HBM3E memory and is designed for large language models and scientific computing. That makes it one of the highest-end chips still under discussion for legal export into China. ### What did Washington approve, and what did it require? Reuters reported that the U.S. cleared sales to roughly 10 Chinese companies, creating a path on paper for exports that had been blocked by tighter controls. (msn.com) Logos Press reported that each approved customer could buy up to 75,000 H200 chips under the license terms it described. Logos Press said the U.S. conditions went beyond a basic export license. (msn.com) The report said Chinese buyers had to show “sufficient security procedures,” guarantee the chips would not be used for military purposes, and accept a structure under which the U.S. Treasury would receive 25% of proceeds from the sales. (nvidia.com) ### Why did the Chinese side balk after approvals were granted? Logos Press reported that Chinese companies cut back purchases after direct instructions from authorities in Beijing. The report linked that response to objections over the U.S. terms and to concerns created by a routing requirement that would send Taiwan-made chips through the United States before onward shipment to China. (msn.com) Beijing’s position has left Nvidia with approved buyers but no completed shipments. Reuters said the Department of Commerce declined comment, and China’s Ministry of Industry and Information Technology and National Development and Reform Commission did not respond to requests for comment. (logos-pres.md) Lenovo told Reuters it was among the companies approved to sell H200 in China as part of Nvidia’s export license. ### How important is China to Nvidia? Nvidia controlled about 95% of China’s advanced chip market before tighter U.S. export restrictions, according to Reuters-based reports and Logos Press. Logos Press also said China once accounted for 13% of Nvidia’s global revenue. (logos-pres.md) Nvidia’s 2025 annual report says its data-center revenue in China grew in fiscal 2025 but remained well below levels seen before the October 2023 export controls. Huang said on an April 30 interview with the Special Competitive Studies Project that Nvidia’s market share in China had “dropped to zero,” according to reports published in early May. Reuters separately reported that Huang has warned U.S. export controls are eroding Nvidia’s foothold in the market. (usnews.com) ### What happens next for buyers and Nvidia? May 14 is the key date for the current opening because that is when Reuters reported the U.S. approvals for the first group of Chinese buyers. May 18 is the key date for the latest setback because that is when Logos Press reported the deal had stalled over the licensing terms and Chinese objections. (cnbc.com) The next step is whether Nvidia can convert those approvals into actual deliveries for the named Chinese buyers already cleared by Washington. Huang’s Beijing meetings and any follow-up from U.S. export authorities will determine whether H200 shipments begin or remain frozen. (finance.yahoo.com) (msn.com)