Why China may buy Nvidia’s H200 chips as Trump eases curbs – and replace them later

Washington restricted H200 exports to China about a year ago, at the end of the Biden administration, to prevent other countries from accessing advanced American technology.

Those curbs were eased under US President Donald Trump, whose government has sought to strike a balance between concerns over China’s AI progress and maintaining the global market share of US firms.

Chinese developers of AI-powered gadgets are likely to welcome the reversal, especially those already using compatible Nvidia chips, as the country currently lacks equally sophisticated alternatives, analysts said. The chips could also support production in sectors such as advanced vehicles and high-performance computers.

“China is behind, so the market is going to want these chips,” said Charles Chang, a finance professor at Fudan University in Shanghai. “I don’t think there’s going to be a whole lot of questions. It’s an easier move for people to say ‘hey, let’s go buy these chips and they already work with the ones we have’.”