The United States has granted export licenses allowing three Chinese companies, including telecommunications giant ZTE, to purchase Nvidia's powerful H200 AI chips, according to a Reuters exclusive published on July 14, 2026.
The disclosure, based on reviewed licensing documents, offers a rare glimpse into how the US government is managing the flow of advanced AI chips to China under a sweeping export control regime. For those tracking the AI industry coverage of the US-China technology competition, the revelation highlights the tension between national security restrictions and commercial interests.
ZTE Among Licensed Buyers
Reuters reported that ZTE is among the Chinese firms that have received US government licenses to purchase the H200, Nvidia's latest and most capable AI accelerator. Two other Chinese companies were also granted approval, bringing the total to three.
The news outlets Mezha and Grafa corroborated that Nvidia H200 approvals had expanded to three Chinese firms. Finance outlet Biggo reported that Nvidia and AMD shares climbed as the market processed the news of ZTE and two others being cleared.
The inclusion of ZTE is particularly notable given the company's history with US sanctions. ZTE was nearly driven out of business in 2018 after the US Commerce Department imposed penalties for violating sanctions against Iran and North Korea. The company was granted a reprieve only after paying a billion-dollar fine and accepting a US-appointed compliance monitor.
The fact that a previously sanctioned Chinese firm is now cleared to buy some of the most advanced AI chips available underscores the complexity of the current export control landscape, where national security concerns intersect with commercial diplomacy.
Shipments Have Begun, Official Says
A US trade official confirmed that Nvidia has begun shipping H200 chips to China, according to a separate Reuters report published the same day. However, the official emphasized that "very few" units have actually been delivered.
CNBC and Bloomberg both reported that only a small amount of Nvidia AI chips have been shipped to China under the licensing framework. Yahoo Finance noted that Nvidia has been "slashing" its AI chip buyer list as the broader China crackdown intensifies, suggesting that the licensing process is highly restrictive even when approvals are granted.
The limited scale of shipments aligns with earlier analysis from TrendForce, which reported that China was expected to allow NVIDIA H200 imports but that total approvals might fall below 200,000 chips, a fraction of the massive demand from Chinese AI companies racing to build competitive models.
Market Reaction and Commercial Stakes
Shares of Nvidia and AMD rose following the news, as TipRanks reported a positive shift in sentiment around China's AI chip scenario. Investors appeared to interpret the selective licensing as a sign that the US export control regime would allow some chip sales rather than imposing a total ban.
Nvidia's H200 is a critical product for the company, representing a significant performance leap over the previous H100 generation. Access to the Chinese market, even in limited quantities, remains commercially important for Nvidia, which counts China as one of its largest revenue regions.
Senator Christopher Coons has been actively investigating Commerce Secretary Lutnick's statements on Nvidia H200 chip exports, indicating that Congress is closely monitoring the licensing decisions.
The Broader Export Control Landscape
The H200 licenses exist within a complex and evolving regulatory framework. The US government has progressively tightened controls on advanced semiconductor exports to China over the past several years, citing national security concerns about AI's military applications.
At the same time, the licensing system allows for case-by-case approvals, creating a narrow pathway for certain transactions. The decision to clear three Chinese firms suggests that US regulators are taking a nuanced approach rather than implementing an outright prohibition.
The timing is significant. The H200 chip clearances come as the US is simultaneously working to accelerate its own domestic AI infrastructure through the Stargate initiative and reclassify allied nations like the UAE for easier chip access. The contrast between expanding access for some partners while carefully metering it to China reflects the strategic balancing act at the heart of US semiconductor policy.
Brookings Institution analysis from June 2026 argued that the US was effectively out of the AI chip market in China, a claim these latest licenses complicate. While the scale of approved sales remains small, the fact that any H200 chips are reaching Chinese buyers at all suggests the door has not closed entirely.
The licensing approach also reflects the economic reality that Nvidia and the broader US semiconductor industry have powerful allies in Washington who argue that overly restrictive export controls simply push Chinese customers toward domestic alternatives, eroding American market position without meaningfully slowing Chinese AI development.
For now, the message from the Commerce Department appears to be that controlled, limited sales are preferable to either a blanket ban or unrestricted access. Whether that middle ground holds as geopolitical pressures continue to mount remains one of the central questions in the global AI arms race.
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