Chinese chipmaking stocks fell on Monday after reports surfaced that the Donald Trump administration was weighing whether to permit Nvidia to sell its advanced H200 artificial intelligence chip in China. The potential policy shift immediately stirred concerns among investors about increased competition for domestic semiconductor firms.
Semiconductor Manufacturing International Corp., China’s largest contract chipmaker, dropped as much as 7% in Hong Kong trading. AI chip designer Cambricon Technologies initially fell more than 2% before rebounding later in the session. Other major chip stocks moved unevenly, with Hua Hong Semiconductor sliding nearly 6%, while NAURA Technology Group gained about 2.6%. The broader Hang Seng chipmakers index edged down around 0.1%.
Market reaction was driven by a report released Friday indicating that U.S. officials were internally debating the possibility of approving Nvidia’s H200 chip for the Chinese market. The H200, launched two years ago, is considered significantly more powerful than the H20—currently the most advanced Nvidia AI chip legally sold in China. Although the H20 faced temporary export restrictions earlier this year, Washington later relaxed those limits as part of a broader trade agreement with Beijing.
Allowing H200 sales in China could reshape the competitive landscape. Analysts warn that access to a more capable Nvidia chip could shift demand away from Chinese chipmakers working to close the gap in AI processing technology. Such a move could also hinder Beijing’s long-term strategy to strengthen domestic self-sufficiency in semiconductors and artificial intelligence.
Despite the market’s reaction, reports emphasized that no immediate decision is expected. The discussions come at a time when U.S. lawmakers continue pushing for stricter limits on high-end chip exports. The bipartisan GAIN AI Act aims to require U.S. chipmakers to prioritize domestic buyers before receiving approval to supply China.
China, meanwhile, has criticized U.S. export controls and accelerated efforts to build a fully independent chip and AI ecosystem.


Canada and Germany Advance Major LNG Supply Partnership
Mega IPOs Like SpaceX and OpenAI Could Reshape S&P 500 and Nasdaq 100 Portfolios in 2026
Asian Stocks Rally as AI Boom and Iran Ceasefire Progress Lift Market Sentiment
Gold Prices Hold Near Record Levels as Inflation Concerns Offset Middle East Ceasefire Hopes
Tokyo Inflation Cools in May, Supporting BOJ’s Cautious Rate Hike Path
Gold Prices Slip as Stronger Dollar and Iran Peace Talk Uncertainty Weigh on Market
Dow Hits Record High as Healthcare and Consumer Stocks Lead Wall Street Rally
U.S. Sanctions Iran’s Strait of Hormuz Authority as Global Oil Markets Face Turmoil
European EV Sales Surge in April 2026 as Tesla and Chinese Automakers Gain Ground
Iran-U.S. Nuclear Talks Remain Unresolved as Strait of Hormuz Risks Keep Markets on Edge
S&P 500 Hits Record High as Tech Rally Slows Amid Iran Peace Uncertainty
Dollar Gains Slightly as U.S.-Iran Tensions Keep Forex Markets on Edge
Asian Markets Slide as New U.S. Strikes on Iran Spark Investor Caution
UK Grocery Inflation Slows to 3.1% as Supermarket Price Pressures Ease in May 2026
U.S. Launches New Strikes on Iran as Trump Signals Peace Deal Uncertainty
US Dollar Slips as Markets Weigh Potential US-Iran Peace Deal and Oil Price Outlook 



