None of Nvidia's H200 AI chips have been sold to Chinese customers, U.S. Commerce Department official David Peters told a House committee. Although the Trump administration approved conditional sales last month, strict export guardrails have kept shipments stalled. Officials say controlled exports aim to deter Chinese competitors, while critics warn of risks that chips could be diverted to military use. Peters also confirmed that chip smuggling into China is ongoing and enforcement is a top priority.
U.S.: No Nvidia H200 Chips Sold To China Yet, Official Says — Shipments Stalled Amid Guardrails and Smuggling Concerns
A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration
WASHINGTON, Feb 24 — None of Nvidia's H200 AI processors have been sold to Chinese customers so far, a U.S. Commerce Department official told lawmakers on Tuesday.
At a House Foreign Affairs Committee hearing, David Peters, the Commerce Department's Assistant Secretary for Export Enforcement, said:
"My understanding is that none so far."
Why Shipments Are Stalled
Last month, the administration of then-President Donald Trump formally approved conditional, China-bound sales of Nvidia's H200 chips. The decision — backed by White House AI czar David Sacks — was framed as a way to manage risks while discouraging Chinese firms, including heavily sanctioned Huawei, from trying to leapfrog U.S. chip designers.
However, stringent guardrails built into the export approval process have so far prevented actual deliveries. Critics who favor a tougher approach on China warn that advanced AI chips could be diverted from civilian markets to accelerate military or strategic AI programs, potentially eroding U.S. leadership in the technology.
Smuggling And Enforcement
Rep. Bill Huizenga (R) pressed Peters about reports of semiconductors being smuggled into China, citing a Reuters allegation that Chinese AI startup DeepSeek used Nvidia's most advanced chip to train a model, likely in violation of U.S. export controls.
Peters confirmed smuggling is occurring and emphasized enforcement efforts:
"Yes, there is chip smuggling, it is going on. We are actively addressing this problem. It is among our top enforcement priorities."
The Chinese Embassy in Washington and Nvidia did not immediately respond to requests for comment.
Reporting: Alexandra Alper in Washington. Editing: Will Dunham and Matthew Lewis.
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