Nvidia’s H200 returns to China, but its market share keeps shrinking

Small batches of Nvidia’s H200 AI accelerators have reportedly started arriving in China following the relaxation of Washington’s licensing rules. This development comes at an uncomfortable time for Nvidia since, although Chinese demand for its products is high, the company’s share in the world’s second-largest chip market is dropping below ten percent.

The situation has effects that extend beyond Nvidia. The company’s GPUs enable much of the training of some of the world’s most sophisticated AI models, which means that decisions regarding who gets access to them are going to shape where the next generation of AI technology is developed.

Case-by-case licenses replaced the outright ban

Earlier, the Bureau of Industry and Security of the Department of Commerce announced that export applications for Nvidia’s H200, AMD’s MI325X, and similar processors would be considered individually rather than being banned altogether. This shift happened after President Trump announced on December 8, 2025, that approved Chinese clients could purchase H200 chips if they abide by certain rules.

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