Nvidia H200 faceoff: China to block AI chip imports after Trump’s approval

Chinese custom authorities have revealed the intentions of China regarding the imports of Nvidia’s cutting-edge H200 chips despite receiving the formal approval from the Trump administration.

According to sources privy to the matter, H200 AI chips would not be allowed to enter China.

As reported by Reuters, Chinese government officials in a highly-stake meeting instructed the domestic technology companies not to buy the chips unless necessary.

“The wording from the officials is so severe that it is basically a ban for now, though this might change in the future should things evolve,” one of the sources commented.

The expected block of H200 from China would be one of the biggest flashpoints in current US-Sino relations.

According to sources, the reason behind these severe directives are not clear yet. One motive could be providing the stimulus to the growth of the chip domestic industry.

In recent months, Nvidia has witnessed the massive surge in H200 chip demand from Beijing as Chinese tech firms have placed orders for more than 2 million, surpassing Nvidia’s inventory of 700,000 of the chips.

According to the Ministry of Industry and Information Technology, Chinese officials told tech companies that the import would be allowed in specific circumstances, including for research and development conducted in collaboration with universities.

“Exemptions are being discussed for R&D purposes and universities, " said one of the sources.

According to analysts, the recent directives could be a bargaining tactic in talks with Washington as Donald Trump is expected to make a visit to Beijing in April.

"Beijing is .... pushing to see what bigger concessions they can get to dismantle U.S.-led tech controls," said Reva Goujon, a geopolitical strategist at research firm Rhodium Group.

The announcement comes as the US formally approved the Nvidia H200 chip exports to China under some conditions. The conditions include third-party verification, 50 percent supply cap, inventory certification, and demonstration of sufficient security procedures from Chinese customers.