• President Trump stated that China has not purchased Nvidia's H200 chips, despite U.S. approval for sales, claiming Beijing 'chose not to' and is focusing on developing its own technology.
  • Chip stocks fell after a U.S.-China summit ended without a major tech deal, reflecting investor concerns over geopolitical tensions and market access.
  • The U.S. had allowed limited H200 exports under new guardrails, including a 25% revenue share arrangement, but actual Chinese procurement remains minimal.

China Opts Out of H200 Purchases

President Donald Trump said on Wednesday that China has not bought Nvidia's H200 chips, despite U.S. export licenses being granted. "They chose not to," Trump told reporters after a bilateral summit, adding that Beijing is prioritizing the development of its own semiconductor technology. The remarks came as chip stocks, including Nvidia, slipped after the summit concluded without a landmark tech agreement. Nvidia shares fell 2.3% in afternoon trading, dragging the Philadelphia Semiconductor Index down 1.8%.

Background on the H200 Export Regime

The H200, part of Nvidia's Hopper generation of AI accelerators, is central to the ongoing U.S.-China tech rivalry. Earlier this year, the U.S. Commerce Department approved limited exports of the chip to China under a regulatory framework that includes a 25% revenue-sharing provision with the U.S. government. The policy was designed to balance national security concerns with commercial interests, allowing Nvidia to tap the Chinese market while maintaining oversight. However, according to people familiar with the matter, China has yet to place significant orders, citing domestic capability-building and strategic autonomy.

Market Reaction and Analyst Views

Investors interpreted Trump's statement as a sign that the U.S.-China tech decoupling is deepening, even as some access remains open. "The market is resetting expectations for Nvidia's China revenue," said a technology analyst at a major investment bank. While the H200 export route exists, the lack of Chinese demand suggests that Beijing is serious about going it alone, which could hurt Nvidia's long-term growth prospects in the region.

Nvidia did not respond to requests for comment on the president's remarks. The company had previously cited China as a key growth market for its data-center chips, but export restrictions have clouded the outlook. Analysts note that Chinese firms like Huawei and SMIC are racing to produce competitive AI accelerators, though they still lag Nvidia's performance.

Implications for the Chip Sector

The development underscores the fragility of U.S.-China tech trade. While the revenue-sharing mechanism was seen as a creative compromise, its effectiveness is now in question. Some experts argue that allowing limited exports could have provided a channel for intelligence gathering and revenue generation, but Beijing's refusal to participate may spur stricter controls from Washington. "Without a deal, we could see both sides digging in their heels," said a former Commerce Department official. The coming months will be critical as the U.S. Congress considers new semiconductor legislation and as China accelerates its domestic chip push.

Correction: An earlier version of this article misstated the percentage of the revenue-sharing provision. It is 25%, not 20%. The text has been corrected.