By Maggie Eastland
Publication Date: 2025-12-12 21:49:00
Last week, as officials weighed the decision, Huang told reporters in Washington that he had no clue if China would accept H200 chips. (Graeme Sloan/Bloomberg)
Key Takeaways:
- China is rejecting Nvidia’s H200 AI chip in favor of domestic semiconductors, White House AI czar David Sacks said, questioning a Trump administration strategy to sell lagging U.S. chips.
- The stance threatens Nvidia’s hopes of recapturing China revenue, a market CEO Jensen Huang estimates at $50 billion, as Beijing backs local champions with incentives up to $70 billion.
- While the U.S. cleared H200 exports as a competitive move against Huawei, China has not publicly accepted or rejected the chip and previously shunned the less capable H20.
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China has figured out the U.S. strategy for allowing it to buy Nvidia Corp.’s H200 and is rejecting the AI chip in favor of domestically developed semiconductors, White House AI czar David Sacks said, citing news reports.
President Donald Trump said on Dec. 8 he would allow shipments of Nvidia’s H200 to China, part of an administration effort backed by Sacks to challenge Chinese tech champions like Huawei Technologies Co. by bringing American competition to their home market. On Dec. 12, Sacks signaled that he…
