China Limits Imports of Nvidia H200 AI Chips, Enforcing Stricter Tech Regulations

This week, Chinese customs officials have notified agents that Nvidia's H200 artificial intelligence chips are prohibited from entering the country, according to insiders. Furthermore, authorities have called upon local technology companies, advising them to refrain from purchasing these chips unless absolutely essential.

An insider labeled this directive as effectively a complete prohibition for now, although future changes could alter the landscape. This development aligns with ongoing disputes surrounding advanced technology exports between the U.S. and China.

The H200 chip, recognized as Nvidia’s second most formidable AI processor, has emerged as a flashpoint in U.S.-China diplomatic interactions. While there’s strong interest among Chinese firms for these chips, it’s unclear if the Beijing restrictions are aimed at promoting local chip production, leveraging negotiations with Washington, or serve as a precursor to a total import ban.

Even though the U.S. granted formal approval for the chip’s export to China this week, authorities in China have not clarified whether the restrictions apply to new orders or current ones. No official response has been published from China’s customs or industry ministries, nor from Nvidia.

Reports suggest that limited exemptions may apply for research and development purposes, particularly in collaborations with universities. Analysts speculate that Beijing may intend to use this restriction as leverage in upcoming negotiations with the U.S. ahead of a significant meeting between Presidents Trump and Xi Jinping.

Since 2022, the U.S. has imposed limitations on advanced chip exports to curb China’s AI advancements. Nvidia’s CEO disclosed that sales of less advanced chips to China practically halted after Beijing’s import block last year.

The H200 chip, which boasts significant enhancements over its predecessor, remains in high demand. Chinese tech companies have already requested over two million units, far outpacing Nvidia’s available supply. However, the intricate relationship between Nvidia, the U.S. government, and China continues to complicate the global tech landscape.