The US Department of Commerce has formally approved the export of Nvidia H200 GPUs to China.

However, the regulation comes with a number of new provisions that had not been previously announced by the government, and does not permit the export of Nvidia chips more powerful than the H200.

Under the updated regulations, chips will be tested in third-party labs to verify their technical capabilities before being exported. Exports will also be approved on a case-by-case basis and will not be permitted unless there is “sufficient supply” of the GPUs in the US, with the total number of exports to be capped at less than 50 percent of US customer volume.

Chinese customers must also demonstrate "sufficient security procedures," and license applications will not be granted for military use cases.

The US export legislation was published in the same week that the US House of Representatives passed the Remote Access Security Act in an effort to close a loophole that has allowed Chinese companies to access sanctioned AI chips by buying or renting them for use on US soil.

Nvidia was first granted permission by the Trump administration to sell H200s to “approved customers” in China and other countries under certain conditions, including a 25 percent export tax. However, it has since been reported that the Chinese government has asked tech companies in the country to pause orders for the GPUs while regulators decide the ratio of Chinese-made chips to H200s customers must purchase.

On the same day the new rules were published (January 13), additional reports emerged that the Chinese government was further solidifying its position in the wake of the incoming legislation.

The Information reported that the government had told some technology companies that its H200 purchases would only be approved under special circumstances, such as for university research and development labs.

Separately, Reuters reported that despite the Trump administration giving exports the green light, customs authorities in China have told border control agents that the GPUs are not permitted to enter the country, and that the government was explicitly instructing domestic technology companies not to purchase the chips unless it is absolutely necessary.

One of the unnamed sources cited by Reuters claimed that the instructions from the government are "so severe that it is basically a ban for now,” but acknowledged that should things change in the future, this position could evolve.