New York, Jan 14, 2026, 16:01 ET — After-hours
- NVDA slipped roughly 1.6% late Wednesday following reports that China’s customs officials have been instructed to block Nvidia’s H200 chips
- Washington has relaxed export licensing rules for H200-class chips to China, though shipments remain restricted by testing, supply, and volume limits
- Attention now turns to the BIS rule set for release on Jan. 15 and Beijing’s official response, if any
Nvidia stock (NVDA.O) slipped 1.6% to $182.79 late Wednesday after Reuters reported that Chinese customs told agents the company’s H200 AI chips can’t enter the country. Officials also cautioned local tech firms against buying them unless absolutely necessary. It’s not clear if this amounts to an official ban. Rhodium Group strategist Reva Goujon suggested Beijing might be “pushing to see what bigger concessions they can get” ahead of President Donald Trump’s April visit to meet Xi Jinping. (Reuters)
Washington has moved to reopen a limited channel for H200 exports to China, imposing strict security conditions. Nvidia praised the move, calling it “a thoughtful balance that is great for America,” after the Commerce Department’s Bureau of Industry and Security introduced rules requiring sufficient U.S. supply and third-party review before shipments. While the H200 isn’t Nvidia’s top-tier chip, its demand has become a key issue in U.S.-China tech relations. (AP News)
A BIS final rule submitted Tuesday, set for publication on Jan. 15, changes the default policy for certain advanced-computing chip exports to China and Macau. Instead of a “presumption of denial,” applications will now undergo case-by-case review. The rule applies to chips like Nvidia’s H200 and AMD’s MI325X when they fall below specific performance benchmarks—total processing performance (TPP) under 21,000 and total DRAM bandwidth below 6,500 gigabytes per second. Exporters must certify adequate U.S. supply, limit shipments to China and Macau to no more than 50% of U.S. shipments of the same product, and rely on an independent U.S. third-party lab for chip testing, alongside “know your customer” checks and security protocols.
Beijing is dialing back. According to The Information, cited by Reuters, the Chinese government told some local tech companies it will approve H200 chip purchases only in “special circumstances,” like university research. China’s embassy in Washington emphasized that maintaining cooperation serves “the common interest of both China and the U.S.” (Reuters)
Last month, Trump revealed plans to permit sales with a 25% fee going to the U.S. government, Reuters reported. This move sparked backlash from lawmakers and former officials worried the chips might strengthen China’s military. Seaport Research analyst Jay Goldberg dismissed the export limits as “a Band-Aid.” Former White House National Security Council official Saif Khan warned the rule could let “about 2 million” H200-class chips slip into China, making enforcement tricky. On the other hand, White House AI czar David Sacks contends that approved exports might slow Chinese competitors like Huawei from gaining ground. (Reuters)
Nvidia stepped in this week to ease worries about its order terms. A spokesperson clarified that the company doesn’t ask for full upfront payment on H200 chips and “would never require customers to pay for products they do not receive,” following a report highlighting unusually tough conditions for orders destined for China. (Reuters)
Broader U.S. tech shares slipped, with the Invesco QQQ Trust, tracking the Nasdaq 100, falling around 1.1% as the session wound down. The SPDR S&P 500 ETF dipped about 0.6%.
For Nvidia investors, the key issue now is if licenses will actually lead to shipments. The new U.S. rules rely on third-party testing and impose shipment limits based on domestic supply. On top of that, China’s customs procedures introduce another hurdle that might delay or block shipments, even after Washington gives approval.
The downside is obvious. Should Beijing turn its measures into a formal ban, or if enforcement disagreements ignite, Nvidia’s China sales might remain stagnant. The stock would then likely react sharply to every headline in the ongoing trade conflict.
Traders are eyeing Thursday’s Federal Register release of the BIS rule and any moves from Chinese ministries or customs agencies that follow. The next clear trigger will be when approved licenses start translating into actual shipments.
