In December 2025, David Sacks, the individual overseeing AI affairs at the White House, made a notable declaration. He stated that despite the United States greenlighting NVIDIA to sell its H200 artificial intelligence chip to China, the Chinese side had discerned the true intent behind this move and had no intention of making a purchase.

Sacks contended that the United States aimed to wrest market share from Chinese tech giants, including Huawei, by peddling the not-the-most-advanced H200 chip. However, he also acknowledged that China was forging ahead with its independent semiconductor development endeavors, rendering the H200 technologically obsolete by comparison.

Previously, the U.S. government had slapped stringent export controls on 'downgraded' AI chips, specifically engineered by firms like NVIDIA for the Chinese market, in a bid to stifle China's technological advancement. This time around, the decision to grant the H200 the 'green light' stemmed from the realization that a complete severance of ties with the Chinese market had inflicted substantial commercial setbacks on U.S. chip behemoths such as NVIDIA.

Simultaneously, the meteoric rise of China's homegrown AI chip sector had also jolted the U.S. into recognizing that indiscriminate blockades might inadvertently hasten the maturation of China's autonomous industrial ecosystem. Nevertheless, the Chinese side remained unconvinced that the United States' gesture constituted a bona fide act of cooperation. Instead, they viewed it as a meticulously crafted ploy to strike a balance between technological dominance and commercial expediency, pacifying domestic enterprises while safeguarding its technological supremacy.

Chinese firms had developed a profound sense of trepidation regarding U.S. chip policies, and China's independent chip strategy had unmistakably taken root. From the realms of chip design and manufacturing to packaging and testing, concerted efforts were underway to expedite the establishment of a self-contained industrial chain. Consequently, China remained steadfast in its commitment to self-reliance and self-improvement, unswayed by the approval of the H200.