ABD has given NVIDIA the go-ahead to sell its more powerful H200 chips to China, despite previous restrictions on certain models. The decision comes as a result of President Trump’s announcement on Truth Social and was confirmed by the Department of Commerce with a 25% tariff on these sales.
The move addresses fears that NVIDIA might lose its grip on the Chinese market if it couldn’t sell its strongest chips. The company now faces the challenge of balancing export compliance while trying to retain a competitive edge in China against Huawei, which has its own ambitious plans to compete with NVIDIA and AMD.
The decision sparked debates within the US over economic and national security implications. Some lawmakers criticized it as a significant risk to both sectors, while others warned of potential consequences for American tech companies like NVIDIA if China leverages these technologies against them.
Beyond direct sales, ABD’s approval doesn’t guarantee that China will purchase the H200 chips. In fact, Beijing has been encouraging local firms to avoid US technology recently. Huawei, in particular, is stepping up its efforts with a three-year strategy to catch up with NVIDIA and AMD.
It means that while NVIDIA can now sell H200 chips in China, Huawei is stepping up its own efforts to rival these offerings.
Yes, the US restricts newer models like Blackwell and Rubin from being sold to China.
This could help NVIDIA retain its market share in China but also poses risks due to increasing competition from Huawei.
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