In a significant shift in U.S. trade policy, the Trump administration moved to allow ByteDance, along with other Chinese tech giants like Tencent and Alibaba, to purchase advanced NVIDIA H200 chips.
As of February 5, 2026, the deal is currently in a state of “conditional approval.” While the U.S. government has expressed its willingness to issue the licenses, actual shipments are stalled because NVIDIA has yet to agree to the strict “Know Your Customer” (KYC) and security requirements proposed by the administration.
1. The New “Trade & Taxation” Strategy
The U.S. has moved away from a “presumption of denial” for these specific chips. On January 15, 2026, the Department of Commerce officially loosened export policies for the H200 and AMD MI325X chips, moving to a case-by-case review.
- The 25% “AI Tax”: Under a Presidential Proclamation issued on January 14, any export of these advanced chips to China is subject to a 25% fee paid directly to the U.S. government.
- Legacy Shift: Industry analysts note that by allowing H200 exports, the U.S. is signaling that the NVIDIA Blackwell (B200) architecture is now its primary “national security” priority, while the H200 is being treated as high-value, taxable “legacy” technology.
2. The NVIDIA Stalemate: The “KYC” Hurdle
Despite the government’s green light, NVIDIA is currently negotiating the finer points of the license. The main friction points include:
- “Commercially Impractical” Rules: NVIDIA has stated it cannot accept the current KYC draft, which would require the company to monitor and verify every single remote user of the chips in China to ensure no military access.
- Third-Party Lab Testing: Before any chips leave for China, they must be tested in a U.S.-based third-party lab to verify they meet strict performance specifications—a requirement NVIDIA argues adds significant cost and delay.
- Intermediary Role: NVIDIA’s stance is that it is an intermediary; it cannot independently accept conditions that its customers (ByteDance, Alibaba, etc.) might find impossible to follow.
3. China’s Internal “Preliminary Approval”
In a rare moment of alignment, the Chinese government has also reportedly given the “nod” to ByteDance, Tencent, Alibaba, and AI startup DeepSeek to import these chips.
| Stakeholder | Current Position (as of Feb 5, 2026) |
| U.S. Commerce Dept. | Approved the policy; licenses pending final security review. |
| U.S. State Dept. | Pushing for stricter restrictions on remote user monitoring. |
| NVIDIA | Negotiating for “commercially viable” license terms. |
| ByteDance | Awaiting final approval; seeks chips to train next-gen Doubao models. |
4. Why ByteDance?
ByteDance is currently one of the world’s largest consumers of AI compute. Access to the H200 would allow it to:
- Accelerate Training: Move its Large Language Models (LLMs) beyond the current performance of its “Doubao” series.
- Reduce Latency: Improve the real-time recommendation algorithms for TikTok and Douyin.
- Strategic Reach: One source suggested that at least some chips are expected to be shipped by April 2026, ahead of a planned meeting between President Trump and Chinese President Xi Jinping.
Conclusion: A High-Stakes Balancing Act
The U.S. is attempting a delicate balance: capturing billions in revenue (via the 25% tax) to fund domestic AI infrastructure, while attempting to maintain a “digital fence” around China’s military. For ByteDance, the H200s represent a lifeline to stay competitive with Silicon Valley, but the deal remains precarious until NVIDIA and the U.S. State Department reach an agreement on who is responsible for watching the chips once they land in Beijing.
