NVIDIA'S powerful H200 AI chips have not yet been sold to Chinese companies, Commerce Department Secretary Howard Lutnick said on Wednesday, citing difficulties faced by those firms to get permission from the Chinese government.
The Trump administration in January gave a formal green light to China-bound sales of Nvidia's H200 chips with some conditions, igniting deep concerns among China hawks in Washington who fear Beijing will harness the technology to supercharge its military.
But shipments of the chips have been stymied by disagreements over the terms of the sales both in China and the U.S., sources have said.
"The Chinese central government has not let them, as of yet, buy the chips, because they're trying to keep their investment focused on their own domestic industry," Lutnick said, when asked about H200 sales to China at a Senate hearing.
"We have not sold them chips as of yet," he added.
Nvidia did not immediately respond to a request for comment.
The continued delay of the chip sales would be welcomed by China hardliners in the U.S., who reject Trump administration arguments that such sales discourage Chinese competitors - such as heavily sanctioned Huawei - from redoubling efforts to catch up with U.S. AI chip designers.
But Lutnick, citing the complexity of U.S.-China relations and the balancing act it requires, also appeared to back off a pledge to reimpose in November a rule that would restrict U.S. tech exports to thousands of Chinese companies.
The regulation, known as the affiliates rule, was delayed for a year last November as part of a trade negotiation with China.
"I agree that the affiliates rule is a smart thing for the United States of America to consider, but it is part of the balance of that full trade agreement," Lutnick said.
Lutnick also downplayed his role on China issues more broadly, saying that the U.S.'s "very complex" trade relationship with China was led by President Donald Trump as well as a team that includes Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
"I focus on the rest of the world," he said.
