Washington has authorised 10 Chinese technology giants to purchase Nvidia’s high-end H200 artificial intelligence (AI) processors, Reuters reported on May 14.

The move coincides with US President Donald Trump’s arrival in Beijing for a high-stakes summit with Chinese President Xi Jinping. While the H200 is Nvidia’s second-most powerful chip, sources indicate that despite the clearance, no physical deliveries have been made to approved buyers such as Alibaba, Tencent, ByteDance and JD.com.

While the diplomatic optics are focused on "win-win" cooperation, the underlying reality is far grittier. Xi and Trump are expected to tackle a friction-filled agenda covering the war on Iran, trade imbalances, tech supremacy and the perennial flashpoint of Taiwan. For markets, the stakes are high; the volatility in the Middle East has already strained regional supply chains, and any further decoupling or escalation in the Taiwan Strait would be "the" black swan event for 2026.

Xi told the US delegation that "mutual benefit and win-win" remains the core of the economic relationship, according to Xinhua. He noted that trade teams reached a "broadly balanced and positive outcome" on May 13, adding that "China’s door will only open wider" for US firms.

In a sign of easing tech friction, Alibaba, Tencent, ByteDance and JD.com have been approved to buy US chips, Reuters reported on May 14. The move suggests a tactical de-escalation in the "tech war" even as structural rivalries deepen. By allowing these giants back into the supply chain, Washington may be looking to stabilise global markets.

However, regional tensions remain sharp. Beijing’s military posturing is the "only source of instability" in the region, Taiwanese Executive Yuan spokesperson Michelle Lee told reporters on May 14. Taipei’s security teams are in close contact with Washington to manage "authoritarian expansion," Lee confirmed.