It is reported that Nvidia has encountered a regulatory delay as sales of its H200 AI chips to China remain in limbo nearly two months after initial US presidential approval, primarily due to an ongoing national security review involving the US Departments of State, Defense, and Energy. While the Commerce Department eased export curbs in January 2026 and completed its specific analysis, the State Department is reportedly advocating for stricter conditions to prevent the technology from being used in ways that could undermine US interests. Consequently, Chinese customers are withholding orders until licensing terms and conditions are finalized, even though China recently approved its first batch of these chips for import to balance domestic AI development with technological needs. Although Nvidia CEO Jensen Huang expressed optimism that the licensing process is nearing completion, the conflicting interests between US security departments and the specific export requirements continue to stall the transition of these high-powered processors into the Chinese market.
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