Despite recent changes in US export regulations, shipments of NVIDIA's H200 AI chips to China and Hong Kong remain negligible. This revelation comes from Jeffrey Kessler, the Under Secretary of the Bureau of Industry and Security, confirming that actual sales have not materialized following months of anticipation.

In December 2025, President Trump announced that NVIDIA could sell H200 chips to select Chinese clients under specific conditions, including a 25% revenue share and security certifications. This decision was seen as a significant shift in US-China trade relations. However, by January 2026, the Bureau had only issued licenses to around ten Chinese firms, including major players like Alibaba, which were authorized to purchase hundreds of thousands of chips valued at about $10 billion.

Fast forward to February 2026, and reports indicated that not a single H200 chip had been shipped to China. Kessler's latest update reinforces this narrative, highlighting that little progress has been made by April 2026.

Understanding the Delays

Several factors contribute to this stagnation. Ongoing US national security evaluations complicate transactions, while stringent Chinese customs regulations further hinder the process. Additionally, the Bureau of Industry and Security is grappling with substantial internal backlogs, delaying approvals significantly.

The Biden administration had previously imposed strict restrictions on semiconductor exports to China to safeguard US leadership in artificial intelligence. Trump's easing of these restrictions, initially seen as a pro-business move, now appears to be more complex in practice. The stark contrast between policy announcements and actual shipments suggests that national security apprehensions persist, albeit under a different guise.

NVIDIA's H200 chip, the second most advanced in its AI lineup, faces a daunting challenge. With $10 billion in potential sales stuck in limbo, the delay poses risks not just for NVIDIA but also for the broader semiconductor market, as high-profile clients await delivery.

This material is informational and should not be considered financial advice.