A massive backlog at the U.S. Commerce Department is holding up billions of dollars’ worth of Nvidia GPUs and other technology exports, including key shipments of the H20 AI chips meant for Chinese companies.
According to officials who spoke with Reuters, this is the worst export license backlog in over 30 years. The delay affects not only Nvidia but also many other U.S. companies waiting for approval to ship high-tech products abroad.
The backlog stems from multiple issues inside the Commerce Department. Staff cuts, leadership changes, poor communication, and stalled regulatory changes have all contributed. Critics say recent actions by Undersecretary Jeffrey Kessler — including restricting communication between staff and companies — have only made things worse.
“We’re seeing whole sectors where there is no movement or indication if or when licenses will be issued,” said Sean Stein, president of the U.S.-China Business Council.
The backlog threatens to harm long-term U.S. business relationships, especially with Chinese firms. Many of them are already seeking new suppliers in China and other countries as a result of the uncertainty.
In 2023, the Bureau of Industry and Security (BIS) took an average of 38 days to approve export licenses. In 2025, that timeline has reportedly stretched far longer, with no clear end in sight.
The U.S. recently relaxed some export rules to ease trade tensions with China, but without license approvals, companies like Nvidia still can’t ship their products.
Industry experts warn that if delays continue, the U.S. may lose its competitive edge in key markets such as AI hardware, radar systems, and advanced manufacturing tools — not just in China, but globally.
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