During a congressional hearing on Tuesday, Under Secretary Jeffery Kessler stated that "very few" Nvidia H200 AI chips have been exported to China and Hong Kong. Jeffery Kessler, who serves as the Under Secretary for Industry and Security at the Commerce Department, testified before a congressional hearing on Tuesday, July 14, 2026, and provided an update on Nvidia's H200 chips heading to China.
"It's a very small quantity of chips," Kessler said. He added that "the bottom line is very few shipments against licenses for H200s and equivalents have taken place." Not every application gets through either - Kessler noted that "there are cases where we deny the license applications we receive."
The H200 is part of Nvidia's Hopper lineup and regarded as an older design, while American companies have moved to the newer Blackwell chips. In a May CNBC interview, Nvidia's CEO Jensen Huang informed investors to "expect nothing" from Chinese sales. Starting in 2025, Nvidia has removed all anticipated Chinese AI chip income from its financial projections.
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The H200 chip, while considered an older design compared to Nvidia's latest Blackwell lineup, remains critical for AI training workloads. Chinese companies, lacking access to such advanced processors, must depend on domestic alternatives that are widely regarded as less capable. The rigorous licensing process, including on-site inspections and tracking of shipments, underscores U.S. efforts to prevent military diversion. These measures reflect the ongoing tension between trade agreements and national security priorities.
These chips, which certain officials argue could be diverted for military use, received licenses earlier this year. In December, President Donald Trump announced that the U.S. government would permit sales of the H200 AI processor to China in return for a 25% reduction.
According to Kessler, the U.S. evaluates each company requesting H200 chips individually, requiring them to satisfy national security criteria and permit inspections to verify compliance. An Nvidia representative declined to comment.
Kessler's comment indicates that H200 exports to China have resumed, which could lift Nvidia's revenue further. However, it is uncertain if Chinese authorities will permit the import of substantial volumes of these processors. Deprived of Nvidia's processors, Chinese companies must rely on locally made alternatives that are viewed as less capable for AI training tasks.
The limited volume of approved shipments underscores the cautious approach by U.S. regulators. Each license application undergoes scrutiny to ensure chips are not diverted to military use, and companies must permit on-site inspections. The restricted flow of H200 chips highlights the tension between trade deals and security oversight.
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