Lutnick Says Nvidia Must Accept Conditions on China Exports of AI Chips

Nvidia Has Not Yet Agreed to Regulatory Conditions

Lutnick Howard, U.S. Secretary of Commerce

U.S. Secretary of Commerce Howard Lutnick said on the 10th (local time) that, regarding the export-control conditions on Nvidia’s H200 artificial intelligence (AI) semiconductor, “Nvidia will have to accept the conditions.”

At a hearing of a subcommittee of the U.S. Senate Appropriations Committee the same day, Secretary Lutnick was asked how the United States would ensure that the H200 is not used for military intelligence purposes after being exported to China. He replied, “The (export) license conditions are very specific, and they were developed jointly with the State Department,” adding the above remarks.

The “conditions” mentioned by Secretary Lutnick appear to refer to Commerce Department provisos stipulating, among other things, that exporters applying for licenses, such as Nvidia, must follow strict Know Your Customer (KYC) procedures when exporting the H200 to Chinese companies.

The KYC procedures are designed to prevent the Chinese military from gaining access to Nvidia’s chips, and Chinese companies importing the H200 must provide the necessary proof. Reuters has reported that Nvidia has not yet agreed to the Commerce Department’s conditions.

In response to a question asking, “Do you believe China will honor the contractual terms it has signed with Nvidia?”, Secretary Lutnick answered, “I will leave that judgment to the President of the United States.”

Meanwhile, Secretary Lutnick, commenting on the recent weakness of the U.S. dollar since the launch of the second Trump administration, said, “For years, the dollar was artificially strong in a way that prevented the United States from exporting to the world,” adding, “Therefore, the current value of the dollar is more natural.”

He went on to say, “We are exporting more goods, and this is why our gross domestic product (GDP) has grown so strongly,” adding, “In the third quarter (last year), GDP grew by 4.4%, and personally I think growth in the fourth quarter could exceed 5%, and in the first quarter (this year) it could exceed 6%. This is because exports have increased due to the weak dollar, while imports have decreased because of tariffs.”