Chinese customs agents have been told not to allow Nvidia H200 imports into China, according to Reuters. The report, which claims to cite three people briefed on the matters, says the move would effectively serve as a ban on the advanced AI chips, although there is no telling whether this is a temporary condition or a permanent directive. The development, if confirmed, would be a fairly sharp twist in the ongoing H200 to China saga, where it was reported very recently that Beijing would allow some Chinese firms to import the chip under special circumstances.
However, Beijing has been mum on whether it will approve or deny these companies’ purchase requests. China’s central government has reportedly been conducting meetings since the White House approved H200 exports to China to assess demand for these chips, and it even told its companies to pause any purchases while it’s still deliberating terms. That’s because the Chinese government is likely trying to balance the needs of its tech companies for advanced AI chips for training cutting-edge models and its goal of achieving semiconductor sovereignty by forcing its tech giants to purchase homegrown AI processors.
While there is no official word from Beijing at the moment, reports as recently as Tuesday had indicated that the import of these chips would be allowed under “special circumstances.” This might seem like a blow to Nvidia and the various Chinese companies that are raring to get their hands on the H200, but the wording is vague enough that it’s plausible that they could still be allowed to acquire them. However, this latest news of customs blocking the chip is a seismic development that would dampen any hopes of Nvidia re-entering the Chinese market.
It isn’t clear yet why this directive, which is yet to be officially confirmed, may have been handed down. After all, Beijing is in a tight race with Washington, D.C., for AI supremacy, with the two rivals competing to see which one will achieve global dominance in the space. It’s also looking to build up its own semiconductor industry so that it can break away from its dependence on American tech stacks. Alternatively, China could use such a directive as a bargaining chip to win more concessions from the U.S., especially as President Donald Trump is set to visit Beijing in April.
Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.
