Commerce Secretary Lutnick Orders Nvidia to Follow China Chip Rules

U.S. Commerce Secretary Howard Lutnick testified during a Tuesday hearing that Nvidia must comply with detailed licensing terms to sell H200 AI chips to China. These requirements, created in coordination with the State Department, include a "Know-Your-Customer" mandate designed to block the Chinese military from accessing the technology. Reports indicate that Nvidia has not yet agreed to these specific conditions.

The possibility of these sales stems from a trade truce brokered in October in South Korea between President Donald Trump and Chinese President Xi Jinping. This agreement established a one-year postponement of rules that would otherwise bar technology shipments to thousands of Chinese companies.

During the hearing, Lutnick deferred questions regarding the reliability of Chinese compliance and the resolution of critical mineral disputes to President Trump.