Nvidia China Chip Sales Stall Despite U.S. Approval Framework

President Donald Trump has confirmed that China has refused to approve purchases of Nvidia’s H200 AI chips, signaling a setback for U.S.–China tech trade negotiations, Aditi Ganguly reported for Moneywise.

Global tensions have been impacting AI chip exports to China. (Photo: Nvidia)

Speaking aboard Air Force One after a summit with Chinese President Xi Jinping, Trump said Beijing is instead prioritizing domestic chip development.

“They have a much higher level than H200. China needs it, and yeah, it came up,” Trump said. “They choose not to buy because they want to develop their own. I think something could happen on that.”

Nvidia shares fell 4.4% following the comments, erasing gains made after earlier reports that the U.S. Commerce Department had approved limited sales.

Reuters had previously reported that the Commerce Department cleared several Chinese firms — including Alibaba, Tencent, ByteDance, and JD.com — to purchase up to 75,000 H200 chips each through approved distributors.

However, no confirmed shipments had taken place.

Analysts estimated potential revenue could reach $15–$20 billion under the licensing framework, with some projecting even higher long-term demand if expanded.