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US Denies Selling AI Chips to China Amid Security Concerns

February 25, 2026
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A high-end Nvidia chip that can train and run artificial intelligence systems has not yet been sold to Chinese firms, a US Commerce Department official said.

The H200 chip had previously been blocked from sale in China over national security concerns. In December, former President Donald Trump said he had reached an agreement with Chinese President Xi Jinping to relax the restrictions. Some US lawmakers warned this could benefit the Chinese military.

David Peters, a US export enforcement official, told the House Foreign Affairs Committee that, to his knowledge, “so far none have been sold” to Chinese end-users.

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The H200 deal, confirmed in January, gives the US government a 25% cut of any sales. But strict conditions have slowed approvals for shipments.

China is also working to develop its own chips to compete with Nvidia, one of the world’s most valuable technology companies.

Nvidia chief executive Jensen Huang said last month that the licence for the H200 is still being finalised and expressed hope that China would allow sales.

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“We’re looking forward to returning to China so that we can compete in the market,” Huang said. “They have many strong chip companies, and we have to compete quite vigorously.”

Nvidia’s top-tier chips, including the Blackwell and the upcoming Rubin series, remain banned in China and were not part of the H200 agreement.

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Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa

Prosper Okoye

Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa

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