The Trump administration recently announced the export of NVIDIA's H200 AI chip to China, initially seen as a strategic move to counter China's domestic semiconductor development with American-made chips. However, AI crypto czar David Sacks has stated that China seems to have seen through this strategy, refusing to adopt the H200 and continuing to support domestic chipmakers like Huawei, casting serious doubt on the policy's effectiveness.
The US allows H200 exports in an attempt to retaliate against China's semiconductor development.
US President Trump recently allowed Nvidia's H200 chip to be exported to China. This decision was supported by AI crypto czar Sacks. The intention is to sell American chips back to the Chinese market to compete directly with Chinese chips, hoping to weaken the influence of Chinese technology companies such as Huawei in China and thus curb the development of China's semiconductor industry.
However, Sacks admitted that he was not sure whether the strategy would actually work.
Sacks turns pessimistic after reports that China has refused to accept US chips.
In an exclusive interview, Sacks stated that he discovered China does not appear to intend to accept this batch of H200 chips. He bluntly stated:
"They are rejecting our chips; clearly they don't want them because they want semiconductor self-sufficiency."
He later added on Twitter (X) , citing a Financial Times report. The report mentioned that China might restrict H200 imports through an approval mechanism, requiring domestic companies to explain the necessity of purchasing US chips.
(China has completely banned foreign AI chips, including those from Nvidia, AMD, and Intel.)
With the outlook for the Chinese market changing, the focus is now on whether the H200 will be approved for adoption.
Nvidia has now completely removed the China data center market from its revenue forecasts, but CEO Jensen Huang once estimated that the China market could reach $50 billion this year.
However, according to Bloomberg analysis, H200's annual revenue potential in China is approximately $10 billion, provided that China is willing to purchase it. Nvidia responded that it continues to cooperate with the US government to apply for export licenses for qualified customers, and stated frankly that the overly broad export controls of the past three years have actually emboldened US overseas competitors.
China strengthens its chip self-sufficiency, with Huawei remaining a key policy focus.
Meanwhile, China is evaluating a $70 billion semiconductor industry support package, demonstrating its determination to reduce reliance on foreign chips. Even if the US allows H200 exports, the Chinese government will continue to support domestic chipmakers such as Huawei and Cambricon.
Liu Pengyu, spokesperson for the Chinese Embassy in the United States, stated that cooperation between China and the United States in the fields of science and technology and economy is in the common interest of both sides, and called on the United States to take concrete actions to maintain the stability of the global supply chain.
H200 is not a top-tier chip; policy implications still await China's stance.
The H200 is a Hopper architecture chip launched by Nvidia in 2023. It began shipping last year and its performance is second only to Blackwell, and it is two generations behind the upcoming Rubin architecture.
The US government cited "18 months behind and not being the most advanced technology" as the reason for granting permission. Sacks also admitted that the US originally planned to take away Huawei's market share by selling non-top-tier chips, but China has seen through this.
Huawei has already addressed the performance limitations of individual chips through system-level solutions such as Cloud Matrix 384. As for whether the H200 will ultimately enter the Chinese market, the Chinese government has neither agreed nor publicly rejected it; further developments remain to be seen.
(Trump approves Nvidia's H200 export to China, with an additional 25% fee)
This article, titled "China Reportedly Rejects Nvidia's H200, Exposing US Chip Strategy," first appeared on ABMedia, a ABMedia .
