Jensen Huang says manufacturing is being switched back on
Nvidia is preparing to resume sales of its H200 processors to some customers in China, a development that could reopen an important market after months of disruption caused by export restrictions, licensing hurdles and political scrutiny on both sides. Chief executive Jensen Huang said the company has already received purchase orders and is now restarting manufacturing, marking a notable change in a story that until recently had shown little sign of progress.
The shift is significant because China was once one of Nvidia’s most important data center markets, accounting for at least one fifth of segment revenue before tighter US controls shut the company out. Huang said at the company’s GTC conference in San Jose that Nvidia now has clearance from both governments, suggesting that a process which had stalled for months has finally begun to move. The announcement introduces a new element into Nvidia’s growth outlook at a time when the company is already expanding at an extraordinary pace without meaningful contribution from China.
Even so, the reopening is not a clean return to business as usual. Sales remain subject to a restrictive framework that includes US licensing requirements, shipment caps, mandatory third-party testing and a rule directing a portion of revenue to the US government. That means China may once again contribute to Nvidia’s numbers, but under conditions far more constrained than before.
China has been a missing piece in Nvidia’s expansion
The delayed restart matters because Nvidia’s growth engine has been running at full speed despite the absence of one of the world’s largest technology markets. The company has continued to benefit from the global race to build artificial intelligence infrastructure, reporting revenue growth of 73 percent in its latest quarter and extending a streak of double-digit expansion that few companies of its size have ever matched. For the current quarter, Nvidia projected growth of roughly 77 percent, while explicitly assuming no data center revenue from China in that guidance.
That detail underscores the strength of demand elsewhere, but it also highlights the size of the opportunity that could reopen if China begins contributing again. A resumption of H200 shipments would not define Nvidia’s overall trajectory, but it could provide additional upside in a market that still matters strategically, financially and symbolically.
At the same time, Nvidia’s experience shows how quickly geopolitics can reshape semiconductor trade. China is not just another market for the company. It is a central arena in the technology competition between Washington and Beijing, which means commercial access now depends as much on political approval as on customer demand.
Policy reversals have reshaped Nvidia’s China strategy
Nvidia’s path back into China has been anything but straightforward. Earlier export controls had already forced the company to create a downgraded chip, the H20, specifically for the Chinese market. Then, after the Trump administration imposed a new licensing requirement in April for chip exports to China and several other destinations, Nvidia said it would take a $5.5 billion charge tied to the restrictions.
Policy then shifted again. In December, President Donald Trump reversed course and allowed Nvidia to sell the more advanced H200 chip into China, provided the US government received a 25 percent share of those sales. Yet even after that decision, little immediate business materialized. As recently as last month, Nvidia said only a small number of H200 products had been approved and that no revenue had yet been generated from them.
The delay reflected how export policy alone was not enough to restore trade. Security reviews in both countries, compliance procedures and practical supply chain questions kept shipments from restarting quickly. Huang’s announcement now suggests those obstacles have eased enough for manufacturing to resume, though the underlying framework remains cumbersome.
Restart offers upside, but conditions remain restrictive
The return of H200 shipments could help Nvidia recapture some lost ground in China, but the terms of access remain narrow. US rules still limit how much can be shipped, impose compliance testing and claim a portion of the proceeds. Those burdens mean China is unlikely to operate as a fully open market for Nvidia in the way it once did. Instead, it may function more as a tightly managed channel for selected sales.
For investors, the immediate importance lies in what this says about Nvidia’s broader position. The company has shown it can deliver explosive growth even while excluded from a major market. If China now begins contributing again, even on a limited basis, that strengthens the narrative of a company whose demand profile remains unusually resilient across regions and product cycles.
Still, the larger story is not only about sales. It is about how the semiconductor industry now operates inside an environment where government approvals, national security concerns and trade policy can alter business conditions with little notice. Nvidia’s restart in China is therefore both a commercial win and a reminder that one of the world’s most valuable chipmakers is still navigating a market shaped as much by diplomacy as by technology demand.
