TLDR
- China has instructed several technology firms to stop placing orders for Nvidia’s H200 chips this week.
- The directive aims to prevent companies from stockpiling U.S. chips while the government finalizes its chip policy.
- Beijing is considering rules that would require local firms to prioritize domestic AI chip purchases.
- Nvidia confirmed that demand for its H200 chips in China remains strong despite the policy uncertainty.
- CEO Jensen Huang said purchase orders from China are seen as support even without official approval.
China has reportedly instructed several domestic technology firms to suspend purchases of Nvidia’s H200 chips this week, citing policy considerations around AI chip access, supply chain direction, and ongoing U.S.-China trade tensions. The directive aligns with Beijing’s broader efforts to strengthen its semiconductor self-sufficiency while reassessing foreign technology dependency. This development comes as U.S. export license approvals for Nvidia’s H200 chips remain pending without a clear timeline.
Suspension of Nvidia H200 Chip Orders
Chinese authorities have asked tech companies to pause purchases of Nvidia’s H200 chips, according to sources familiar with the situation. The move aims to prevent companies from stockpiling U.S. chips before a formal decision is issued by regulators. Officials are still determining the future conditions under which Nvidia’s chips might be allowed into the Chinese market.
This measure coincides with broader national efforts to prioritize domestic chip alternatives. By discouraging preemptive buying, China seeks to align corporate behavior with evolving policy goals. The report said the suspension was issued as the government reviews strategic access to high-performance semiconductors.
A spokesperson for the Chinese Embassy in the U.S., Liu Pengyu, stated, “China is committed to basing its national development on its own strengths.” He also said China remains open to cooperation to safeguard global industrial and supply chain stability. Government ministries have not issued formal public statements about the order.
U.S. Export Controls and Nvidia’s Position
Nvidia has faced tightened export restrictions from the U.S. as Washington continues efforts to restrict high-end semiconductor sales to China. The H200 chip, designed for AI processing, falls under hardware scrutinized by U.S. regulators. However, Nvidia confirmed demand from Chinese clients remains high despite policy uncertainty.
CEO Jensen Huang said this week at CES that Chinese orders for the H200 chip are strong and interpreted as support. “We view orders as validation, not as an official green light,” Huang explained during the event. Nvidia has not commented on the latest directive reported from Beijing.
Export licenses are still in process with no confirmed deadline for decisions. The chipmaker is waiting for regulatory guidance while navigating competing demands from two governments. The company has not disclosed how many units were already ordered or delivered.
Shift Toward Domestic Chip Procurement
Beijing is expected to introduce mandates requiring AI firms to buy chips from Chinese manufacturers. The reported policy aims to reduce dependence on U.S.-based designs and to boost domestic chip innovation. Government bodies are working on frameworks that support domestic industry growth while managing international supply access.
Firms may face pressure to transition their infrastructure in line with new directives. At the same time, compliance with shifting export controls adds complexity to operational planning. Beijing is reportedly monitoring company responses during this transition period.
According to sources, the suspension also helps regulators control the narrative on foreign chip access. Authorities want to maintain a level playing field during the policy drafting phase. China’s internal policy discussions remain confidential.
Late last year, the U.S. allowed Nvidia to sell H200 chips to Chinese firms with a condition attached. The decision reversed a previous ban, but included a 25% revenue-sharing tax. This marked a unique arrangement in the ongoing semiconductor trade conflict.
The H200 chip is not Nvidia’s latest product, as the company has already introduced the Blackwell chip. The new chip has not been included in export approvals so far. It remains unclear whether future restrictions will apply to Blackwell units as well.
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