On Tuesday, the Donald Trump administration officially approved Nvidia Corporation's (NASDAQ: NVDA) sale of its H200 artificial intelligence chips to China. US Authorizes H200 Exports Under New Regulations This authorization permits Nvidia to resume shipments of its H200 chips to China—its second-most powerful AI processor—under a newly established regulatory framework. The rules mandate third-party testing to confirm the chips' technical specifications and set limits on the quantity China may receive relative to U. S. customers. Under these regulations, China cannot obtain more than 50% of the number of H200 chips sold to American buyers. Nvidia is also required to certify that adequate supply remains in the U. S. before any exports are approved. Meanwhile, China has informed selected tech companies that it will allow purchases of Nvidia H200 chips only in limited cases, such as for university research laboratories, reported investing. com on Tuesday (citing The Information). Security Checks and Military Use Restrictions Chinese customers must demonstrate "sufficient security procedures" and formally pledge that the chips will not be employed for military applications. These conditions represent a significant tightening compared to previous policies, which lacked explicit verification and usage safeguards. Last month, Trump stated he would permit the sales in exchange for a 25% fee paid to the U. S.

government. Following this, several leaders, including former U. K. Prime Minister Rishi Sunak, criticized the decision, calling it “naive” to assume these chips would not eventually support military uses. However, analysts such as Futurum CEO Daniel Newman argue that China’s best chance to stay competitive in AI hinges on continued access to Nvidia’s chips. High Demand Amid Political Tensions Last month, Chinese tech firms reportedly ordered over 2 million H200 chips for delivery in 2026, far surpassing Nvidia’s current stock of approximately 700, 000 units. In response, Nvidia requested Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) to boost production and accelerate development of its Blackwell and Rubin chips. Simultaneously, Chinese authorities have instructed some domestic firms to pause H200 chip orders. Nvidia Tightens Conditions for Chinese Buyers Nvidia CEO Jensen Huang mentioned earlier this month that any Chinese approvals would be reflected in customer orders rather than public statements. The company has also reportedly toughened commercial terms, now demanding full upfront payment and strict contract conditions from Chinese buyers, eliminating previous flexibility that allowed partial deposits. For more insights, see: From Moxy Hotels to $12B in Real Estate — The Firm Behind NYC’s Trendiest Properties Welcomes Individual Investors. Stay Updated: Get 5 New Trade Ideas Every Week. Click now for top trades daily, alongside unlimited access to advanced tools and strategies for a market edge. Latest Stock Analysis from Benzinga: APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article, "Trump Administration Clears Nvidia’s H200 AI Chip Sales to China, But Beijing Reportedly Limits Purchases to Special Cases, " originally appeared on Benzinga. com.