China has approved its first batch of Nvidia’s H200 artificial intelligence chips for import, according to sources familiar with the matter, signaling a shift in Beijing’s approach as it seeks to balance rising demand for advanced AI computing with efforts to boost domestic chip development.
The approval covers several hundred thousand H200 chips and was granted during Nvidia Chief Executive Jensen Huang’s visit to China this week, the sources said, speaking on condition of anonymity due to the sensitivity of the issue.
The initial approvals were allocated mainly to three of China’s largest internet companies, while other firms have since joined a growing queue for future clearances. The identities of the companies receiving the first permits were not disclosed.
The decision comes after months of uncertainty surrounding the fate of Nvidia’s H200 chip in China, where authorities had previously instructed customs officials that the processor was not permitted to enter the country, leaving open the question of whether the restriction was temporary or part of a broader policy shift. The H200, Nvidia’s second most powerful AI chip, has become a key flashpoint in U.S.–China technology relations, as Washington tightens controls on advanced semiconductors to limit potential military use by Beijing.
While demand for Nvidia’s chips among Chinese firms remains strong, Beijing has been weighing whether to restrict imports to protect local chipmakers, use access to foreign technology as leverage in negotiations with Washington, or allow limited shipments to meet near-term AI needs. China’s industry and commerce ministries, as well as Nvidia, had not responded to requests for comment at the time of publication.