Nvidia's AI Chip Sales to China Stalled by US Security Review
Nvidia's plans to sell its H200 AI chips to China have become uncertain due to a security review by the US State Department. Despite President Trump's export approval, Chinese tech companies are holding off on orders until licensing terms are clarified. This situation highlights the ongoing geopolitical tensions in technology trade.
Nvidia's China Strategy Hits Security Wall
Technology giant Nvidia's plans to sell artificial intelligence (AI) chips to the Chinese market have been disrupted by strict security reviews from the US government. The export of advanced AI processors, particularly models like the H200, cannot proceed through the US State Department's special licensing and security assessment process, despite President Trump's general export approval. This development marks a new front in the technology war between the two superpowers.
Industry analysts familiar with the matter note that the review process is proving more complex and lengthy than anticipated. US authorities are concerned that these high-level chips could be used in military or civil-military fusion projects. This concern stems from China's rapid advancement in artificial intelligence and the critical role these technologies play in strategic competition.
Chinese Giants Anxious: Orders on Hold
The climate of uncertainty is also unsettling China's leading technology and cloud computing companies. Giants like Alibaba, Tencent, and Baidu have significant demand for Nvidia's high-performance AI chips like the H200. These chips are indispensable for training large language models (LLMs) and complex data analysis. However, company executives are hesitant to place large-scale orders until licensing conditions and long-term supply guarantees are clarified.
This hesitation is rooted in previous experience with similar restrictions. Past US export controls have disrupted the supply chains of Chinese companies. Firms are now preparing to activate their contingency plans. The shift toward domestic chip manufacturers is increasing, while the search for alternative suppliers is gaining momentum.
Geopolitical Tensions Reflect on Technology Market
The Nvidia case is a concrete example of the US-China struggle for technological supremacy. The US is tightening export controls to prevent sensitive technologies from falling into the hands of its rival. This policy directly impacts global supply chains and forces companies to navigate an increasingly fragmented technological landscape. The outcome of this review will set a significant precedent for future high-tech trade between the two nations.
