Recent reports from mainland China indicate that authorities have approved the import of an initial batch of Nvidia's H200 chips. The move highlights yet another turn in the intensifying US–China technology rivalry.
Tzu Hsien Tung, chairman of Pegatron, was blunt in his assessment. Global trade, he said, is no longer driven primarily by markets but by politics. Semiconductors, oil, and other critical resources have become bargaining chips—and strategic weapons—in great-power competition. This dynamic is likely to endure. Caught between Washington and Beijing, Taiwan must carefully leverage its strengths to chart the best possible path forward.
A warm welcome in Beijing
During Nvidia chief executive officer Jensen Huang's recent visit to China, Beijing offered what observers described as an unusually warm reception. According to foreign media reports, Chinese regulators have approved the import of several hundred thousand H200 chips. Priority has been given to three major Chinese internet companies for use in data centers and artificial-intelligence services. Other firms will have to wait for regulatory clearance.
Politics drives trade
Tung made the remarks on January 29, 2026, while attending the opening of the 2026 Taipei Game Show in Taipei. Speaking to reporters afterward, he framed China's decision within the broader context of US–China political competition.
Under Former US President Joe Biden, Washington pursued what amounted to a comprehensive blockade. Incumbent US President Donald Trump, by contrast, operated with what Tung described as a more "personalized" style. It could be negotiated, even bought, though only under specific conditions.
Those conditions included several thresholds. Exports to China would require the payment of a 25% "transit tax" to the US government. Sales volumes would be capped at no more than 50% of what Nvidia supplies to American customers.
China has adopted a dual-track approach. The country is allowing limited purchases of H200 chips by select companies while simultaneously encouraging domestic firms to adopt homegrown systems. The United States, meanwhile, has preserved a technological margin. While the H200 represents an advance over previous products, it still falls short of Nvidia's latest Blackwell and Rubin architectures.
The result, Tung suggested, is a carefully calibrated dance. Competition and cooperation are constantly being adjusted on both sides.
Globalization's end
Tung invoked a remark made several years ago by Morris Chang, the founder of TSMC. Chang declared that globalization has ended. Today's reality, Tung argued, goes even further.
Politics now dominates trade. Semiconductors, oil, rare earths, and other resources have become strategic tools of statecraft. Technology and commerce—once guided largely by efficiency and innovation—are increasingly shaped by geopolitical considerations.
This environment, Tung warned, is unlikely to change anytime soon. For Taiwan, positioned at the center of the US–China rivalry, the challenge will be to proceed cautiously. The goal is to make the most of its technological advantages to secure a sustainable future.
Article edited by Jerry Chen
