AI chipmaker Nvidia will have to comply with strict licensing conditions on sales of its second-most advanced AI chip to China, according to Howard Lutnick.
Speaking at a congressional hearing on Tuesday, Lutnick said the licensing framework governing Nvidia’s China sales is detailed and non-negotiable. He explained that the terms were developed in coordination with the U.S. State Department and are conditions Nvidia must accept.
When questioned about whether Chinese entities could be trusted to follow restrictions on the use of the chips, known as the H200, Lutnick said the matter ultimately falls under the authority of US President Donald Trump.
Recent reports indicate Nvidia has not yet agreed to all proposed safeguards tied to its China sales, including Know-Your-Customer requirements designed to prevent the Chinese military from gaining access to the technology.
Approval for Nvidia to resume sales of its advanced AI chips to China followed a trade truce reached between Trump and Chinese President Xi Jinping during talks in South Korea in October. As part of that agreement, the United States committed to delaying for one year a rule that would have blocked shipments of American technology to thousands of Chinese companies.
Asked again about the decision, Lutnick emphasized that US-China relations remain highly complex and are being handled directly by Trump and the secretary of state. “They guide us and we follow their direction,” he said.
Lutnick also pointed to broader strategic concerns, noting that critical minerals, rare earths, and magnets have increasingly been used as geopolitical tools. He added that resolving these sensitive issues ultimately rests with the president.
