The US administration authorized the Chinese firm New Matrix to assemble Nvidia H200 chips into AI server systems. However, investigations revealed that the company's registered address in a Beijing industrial park corresponds to an empty, unfinished building.
US policy shifted on December 8, 2025, allowing H200 exports to China under a revenue-sharing model where 25% of proceeds go to the US. Since mid-January 2026, the US Commerce Department has implemented a case-by-case licensing review process for these exports.
In January 2026, Chinese authorities conditionally approved the import of approximately 400,000 H200 chips for major firms including Alibaba, ByteDance, and Tencent. Despite this, large-scale imports have faced significant regulatory hurdles.
As of early November 2026, an estimated 600,000 H200 units remain stockpiled in Hong Kong due to pending import approvals. Nvidia reported that sales of these chips in China accounted for less than 1% of its data-center revenue in the July 2026 quarter.
