Nvidia’s efforts to supply its high-end H200 AI chips to China have hit a stalemate, despite the U.S. government granting export clearance to approximately ten major Chinese firms, including Alibaba, Tencent, and ByteDance. The deal remains in limbo as CEO Jensen Huang visits Beijing alongside President Donald Trump, hoping to resolve the deadlock. Although the U.S. has authorized these sales—with a 25% revenue-sharing agreement negotiated by Trump—no deliveries have occurred, leaving Nvidia’s once-dominant 95% market share in jeopardy.
The delay is fueled by mutual suspicion and strategic barriers. On the U.S. side, strict security protocols and a requirement that chips pass through U.S. territory have raised concerns in Beijing regarding potential tampering. Conversely, the Chinese government is reportedly discouraging domestic firms from finalized purchases, instead pushing for a shift toward homegrown alternatives like Huawei to reduce foreign dependence and foster a domestic AI ecosystem.
In Washington, the situation has drawn criticism from China hardliners who argue that any chip sales to Beijing undermine America’s technological lead. Meanwhile, Nvidia faces the reality of its China market share effectively dropping to zero as local competitors gain ground. The outcome of the ongoing summit between President Trump and President Xi Jinping is now seen as the critical factor in determining whether these approved shipments will ever move forward.
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