China has officially approved the import of Nvidia’s H200 AI chips, marking a significant policy shift aimed at balancing the country’s domestic AI development with the encouragement of local chip production. The first shipment, which includes hundreds of thousands of units, is intended for major internet companies, while additional requests from other firms are pending approval. This decision comes in response to strong market demand and follows recent clearance from the US for these sales.
China has reportedly approved the import of its first batch of Nvidia’s H200 artificial intelligence (AI) chips. This marks a major change in Beijing’s approach to American-made hardware after months of waiting. A report by the news agency Reuters cited two people familiar with the matter to claim that the Chinese government has recently allowed the sale of several hundred thousand Nvidia H200 AI chips. This decision reflects China’s effort to meet its urgent need for advanced technology while also encouraging domestic chip production. The approval came during Nvidia CEO Jensen Huang’s visit to China and represents the first major clearance of high-end AI components from a US company under current policy.
However, Chinese technology companies have placed orders for more than two million H200 chips, far exceeding Nvidia’s available inventory, Reuters reported last month. The H200 delivers roughly six times the performance of Nvidia’s H20 chip.
previously the most advanced AI chip it was allowed to sell to China, they still lag far behind the H200 While Chinese companies such as Huawei now have products that rival the performance of Nvidia’s H20 chip.
This development is viewed as an important moment for Nvidia’s business in the region, even as China continues to emphasise self-reliance in its semiconductor industry. The approval follows a period of restrictive trade conditions between the two countries. The H200, Nvidia’s second-most-powerful AI chip, has become a significant point of tension in US-China relations. Despite strong demand from Chinese firms and US approval for exports, Beijing’s reluctance to allow imports has been the main obstacle to shipments.