US Commerce Department official Jeffrey Kessler confirmed at a congressional hearing on the 14th (local time) that NVIDIA H200 AI chip shipments to China and Hong Kong have been 'extremely small' under export license approvals. Kessler stated the quantity of chips exported to China is very limited, following export licenses issued early this year. The confirmation comes amid ongoing US-China technology export restrictions that have constrained NVIDIA's ability to sell advanced AI chips to Chinese markets since last year.
US Commerce Department Implements Case-by-Case Export Review Process
Jeffrey Kessler, Under Secretary for Industry and Security at the US Commerce Department, told the congressional hearing that the government reviews companies seeking H200 chips on a case-by-case basis. Applicant companies must meet national security requirements and undergo inspections to verify chip suitability. Kessler added that some license applications received have been denied. The H200 represents NVIDIA's older Hopper chip generation, while US companies currently use the faster and more powerful Blackwell chips.
NVIDIA Excludes China AI Chip Revenue from Financial Forecasts
NVIDIA has excluded China AI chip sales from its earnings forecasts since last year. CEO Jensen Huang told investors in May not to expect anything from China revenue. According to CNBC, Kessler's statement suggests H200 shipments to China have resumed and could potentially boost NVIDIA's sales. The company has long attempted to export AI chips to China, but most products face Chinese export restrictions due to the US-China trade and technology conflict.
Trump Administration Approved H200 Export Licenses Early This Year
US President Donald Trump announced in December last year that he would approve H200 AI chip sales to China in exchange for requiring a 25% fee on sales proceeds. Export licenses for H200 chips were issued early this year following this policy announcement. The licensing framework establishes the regulatory pathway for limited controlled exports of the older-generation AI processors to Chinese and Hong Kong markets under strict government oversight.
FAQ
What did the US Commerce Department confirm about NVIDIA H200 chip exports to China?
Jeffrey Kessler confirmed at a congressional hearing on the 14th (local time) that H200 chip shipments to China and Hong Kong under export licenses have been extremely small, with very limited quantities exported.
Why has NVIDIA excluded China from its AI chip revenue forecasts?
NVIDIA has excluded China AI chip sales from earnings forecasts since last year due to US export restrictions. CEO Jensen Huang told investors in May not to expect revenue from China markets.
How does the US government review H200 export applications to China?
The US Commerce Department reviews companies seeking H200 chips on a case-by-case basis, requiring applicants to meet national security requirements and undergo inspections to verify chip suitability, with some applications being denied.
