China Approves First Imports of Nvidia H200 AI Chips

China has approved the first batch of Nvidia’s powerful H200 AI chips for import, covering several hundred thousand units. The move comes as Beijing balances rising AI demand from major tech firms with the development of its domestic semiconductor industry.

China Gives Green Light to Importing First Batch of Nvidia’s H200 AI Chips

China has approved the import of its first batch of Nvidia’s H200 artificial intelligence chips, according to two people familiar with the matter, marking a notable shift in Beijing’s stance as it attempts to balance rising AI demand with the development of its domestic semiconductor ecosystem.

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, requesting anonymity due to the sensitivity surrounding the issue.

Initial Approvals Focused on Major Chinese Internet Firms

The first batch of import approvals has been allocated primarily to three major Chinese internet companies, with additional enterprises now lining up for future clearances.

“The first batch of approvals has been allocated primarily to three major Chinese internet companies, with other enterprises now joining a queue for subsequent approvals,” one of the sources said.

The identities of the companies receiving the initial approvals were not disclosed.

China’s industry and commerce ministries, along with Nvidia, had not responded to requests for comment at the time of publication.

Nvidia H200 at the Centre of US–China Tech Relations

The H200, Nvidia’s second most powerful AI chip, has become a significant flashpoint in US–China relations. While demand from Chinese firms has remained strong and Washington has cleared exports, Beijing’s reluctance to approve imports had previously blocked shipments.

Earlier this month, the US formally approved Nvidia’s H200 exports to China, removing regulatory barriers on the American side. However, Chinese authorities retain final authority over whether the chips are allowed to enter the country.

In recent weeks, uncertainty remained as Beijing weighed the need for advanced AI hardware against its long-term goal of strengthening domestic semiconductor capabilities.

Strong Demand From Chinese Tech Firms

Chinese technology companies have demonstrated overwhelming demand for Nvidia’s latest AI hardware.

• Orders placed exceed two million H200 chips

• Demand far outstrips Nvidia’s available inventory

• The EU and US remain key reference markets for AI infrastructure growth

Earlier this month, Chinese customs authorities informed agents that the H200 chips were not permitted to enter China, according to Reuters. The latest approvals suggest a policy recalibration.

It remains unclear how many companies will receive approvals in future batches or the criteria Beijing is applying to determine eligibility.

Jensen Huang’s China Visit and Strategic Timing

Jensen Huang arrived in Shanghai last Friday for Nvidia’s annual employee events and has since travelled to Beijing and other cities, according to Reuters.

The timing of the approvals during Huang’s visit underscores the strategic importance of Nvidia’s relationship with the Chinese market, even as geopolitical tensions persist.

BALANCING ACT

The approval of H200 imports indicates that Beijing is prioritising the needs of major domestic internet companies, many of which are investing billions of dollars in data centres to develop AI services and compete with US rivals such as OpenAI.

While Chinese firms, including Huawei, now offer chips that rival the performance of Nvidia’s H20 — previously the most advanced AI chip permitted for sale to China — they still trail the H200 significantly.

• The H200 delivers roughly six times the performance of Nvidia’s H20 chip

• Domestic alternatives remain competitive but not equivalent at the highest performance tier

At the same time, Beijing has discussed imposing conditions on foreign chip imports.

“Still, Beijing has discussed requiring companies to buy a certain quota of domestic chips as a condition for receiving approval to import foreign semiconductors,” Reuters previously reported.

Strategic Implications for China’s AI Ecosystem

The move reflects China’s broader AI strategy:

• Supporting national tech champions

• Ensuring access to cutting-edge computing power

• Encouraging parallel adoption of domestic semiconductors

As AI competition intensifies globally, the selective approval of Nvidia’s H200 chips highlights China’s effort to strike a careful balance between technological self-reliance and global competitiveness.