The Chip Stalemate: Where the US and China Stand on Semiconductors

On January 13th, 2026, the Trump administration formally approved Nvidia’s H200 chips for export to China, reversing months of restrictions on the company’s second-most-powerful AI processor. The approval came with conditions: a 25% fee on sales, security requirements, and a prohibition on military use. According to Reuters and Nikkei Asia, a mere 24 hours later Chinese customs authorities had instructed agents the chips would not be permitted entry, while government officials summoned domestic tech companies and urged them not to purchase the processors.