Nvidia CEO Jensen Huang announced this week that the company has received purchase orders from Chinese customers for its H200 processors and is in the process of restarting production. This marks a significant step towards resuming chip sales to China after months of regulatory challenges in both the U.S. and China.
According to Huang, Nvidia now has regulatory clearance from both the U.S. and China, allowing them to move forward with fulfilling the purchase orders they have received. The approval process on China’s side had been the sticking point, with Beijing holding back from clearing imports despite U.S. export licenses being in place. However, recent developments indicate that China has issued licenses for many customers, paving the way for Nvidia to resume sales.
The H200 is Nvidia’s second-most powerful AI chip, falling below the Blackwell line which remains restricted from export to China. Export licenses for the H200 come with conditions such as the U.S. taking a percentage of chip sale proceeds, capped shipments, and sales going through third-party verification.
Prior to the export controls, China accounted for a significant portion of Nvidia’s revenue, particularly in the data center business. With the assumption of zero data center revenue from China in their recent earnings guidance, any resumed sales to Chinese customers would represent additional upside for the company.
Huang had previously stated that Nvidia was “100% out of China” and had been working to find a pathway back into the market. The H200 export framework emerged as a compromise earlier this year, allowing for limited sales to specific Chinese buyers. Preliminary approval was granted to major Chinese tech companies like ByteDance, Tencent, Alibaba, and AI startup DeepSeek to import the chips.
A previous attempt to revive Nvidia’s China business through a lower-capability H20 chip had stalled after Beijing indicated that state-linked firms should prioritize domestic alternatives. The progress with the H200 processors signifies a positive development for Nvidia’s presence in the Chinese market.
Overall, Nvidia’s efforts to navigate the regulatory landscape in both the U.S. and China have culminated in the resumption of chip sales to Chinese customers. The company’s strategic approach to addressing export controls and compliance requirements has enabled them to move forward with production and fulfill purchase orders, signaling a new chapter in their business operations.
