- NVIDIA‘s share of revenue from China dropped to under 8% this year, compared to 26% in 2021.
- Beijing is discouraging state-linked organizations from using Nvidia hardware despite U.S. approval to export an older AI chip, the H200, to China.
- Chinese chipmakers, including Cambricon, Moore Threads, Huawei, Alibaba, and Baidu, are increasing competition for Nvidia in the market.
- The H200 chip allowed for export is not Nvidia‘s most advanced, as the company has already released newer models to the global market.
Nvidia received approval from the U.S. government to export its H200 Artificial Intelligence chip to China under certain conditions. This announcement came after former President Donald Trump stated that he had notified President Xi Jinping that such exports would be permitted for approved customers, as described in his social media post. Despite this, China’s role in Nvidia‘s overall revenue has shrunk. In 2021, China, including Hong Kong, represented 26% of the company’s revenue; this figure declined to under 8% for the first nine months of 2025.
In recent quarters, sales of “China-safe” versions of Nvidia‘s AI chips, which comply with past U.S. restrictions, yielded minimal results. For example, the H20 chip designed for China generated only about $50 million in revenue compared with Nvidia‘s $57 billion total over the same period, as stated on the company’s earnings call (Data shows).
The approval covers the H200 chip, which is not Nvidia‘s latest technology. The company has since introduced the B200, B200A, and Blackwell Ultra accelerators. Nvidia is also expected to launch a new Rubin architecture in 2026. The H200, along with the H20, utilizes TSMC’s 4-nanometer process technology, a common standard for top AI processors (according to the Institute for Progress (IFP)).
On the policy front, Chinese government agencies reportedly maintain their guidance to avoid Nvidia chips, raising doubts about large-scale adoption despite the export approval (Financial Times report).
Domestic development continues to accelerate, with local firms such as Cambricon and Moore Threads receiving government support to expand production and innovation. Large technology companies like Alibaba and Baidu are also supplying their own AI chips both for internal use and commercial purposes. While a think tank assessment suggests that Huawei‘s top local chip may not match the H200 until at least late 2027, and Chinese manufacturers’ output remains far below that of the U.S., the domestic ecosystem is gaining strength (as stated by IFP).
Additionally, Nvidia is now subject to a 25% government levy on future chip sales to China. Given the company’s strong global profits, this cost is not expected to impact its broader financial results significantly.
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