Nvidia’s Campaign to Sell AI Chips to China Finally Pays Off

image via WIRED

January 29, 2026, 4:10 PM

• •Beijing approved the sale of hundreds of thousands of Nvidia H200 AI chips to Chinese companies.
• •The US reversed its policy of restricting sales of advanced AI chips to China.
• •The policy shift aims to balance economic interests with national security concerns.
• •Experts warn of potential damage from inconsistent US chip control policies.

Nvidia CEO Jensen Huang is enjoying a successful trip to China, coinciding with a US policy shift that allows the sale of Nvidia H200 AI chips to Chinese companies. This reversal, influenced by Huang's lobbying, permits sales to major firms like ByteDance, Alibaba, and Tencent, despite prior restrictions aimed at limiting China's AI development due to national security concerns. The change reflects a strategic move to maintain US influence in the market and counter the ineffectiveness of previous export controls. However, experts suggest that this policy inconsistency may inadvertently strengthen China's domestic chip industry while creating instability.

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