China Clears First Imports of Nvidia’s H200 AI Chips in Shift on Advanced Semiconductors

China has approved the import of its first batch of Nvidia’s H200 artificial intelligence chips, two people familiar with the matter told Reuters, marking a notable shift as Beijing seeks to balance soaring AI demand with efforts to spur domestic semiconductor development.

The approval covers several hundred thousand H200 chips and was granted during Jensen Huang’s visit to China this week, the sources said, requesting anonymity due to the sensitivity of the decision. The initial allocations have been directed primarily to three major Chinese internet companies, with other firms now lining up for subsequent approvals.

Chinese industry and commerce ministries, as well as Nvidia, did not respond to requests for comment at the time of publication.

A Flashpoint in US–China Tech Ties

Nvidia’s H200 its second most powerful AI processor has become a major flashpoint in US–China relations. While the United States earlier this month formally cleared exports of the chip to China, Beijing’s hesitation to allow imports had remained the key obstacle to shipments.

Chinese customs authorities had earlier told agents that H200 chips were not permitted to enter the country, Reuters reported this month. That stance appears to have shifted as authorities weigh the need to support domestic AI development.

Chinese technology firms have placed orders for more than two million H200 chips, far exceeding Nvidia’s available inventory, Reuters reported last month.

Balancing AI Ambitions and Domestic Chips

The approvals suggest Beijing is prioritising the needs of large Chinese internet companies that are investing billions of dollars in data centres to develop AI services and compete with US rivals such as OpenAI.

While Chinese chipmakers including Huawei now offer processors that rival the performance of Nvidia’s H20 chip, the most advanced model previously allowed into China, they still lag well behind the H200. Nvidia says the H200 delivers around six times the performance of the H20.

At the same time, Beijing has discussed requiring companies to purchase a quota of domestically produced chips as a condition for receiving approval to import foreign semiconductors, Reuters has previously reported.

Uncertainty Over Next Batches

It remains unclear how many additional companies will receive approvals in future batches or what criteria Chinese authorities are using to determine eligibility. Huang arrived in Shanghai last Friday for Nvidia’s annual employee celebrations and has since travelled to Beijing and other cities, Reuters reported earlier.

The move underscores Beijing’s delicate balancing act: meeting immediate AI infrastructure needs while continuing to nurture a self-reliant domestic semiconductor ecosystem.