BEIJING: China has moved to block imports of Nvidia’s H200 artificial intelligence chips just days after the United States approved their export under stringent conditions, according to multiple people close to the matter and corporate supply-chain sources.
Chinese customs authorities told agents this week that the high-performance H200 processors, recently cleared by the U.S. Commerce Department for limited sale to China, are “not permitted to enter” the country, sources familiar with the situation said. The directive, first reported by Reuters, would effectively bar the powerful chips used to train advanced AI models from entering one of Nvidia’s largest potential markets.
The move has already forced some suppliers of specialized components for the H200 to halt production to avoid building inventory that may not be sellable, according to industry insiders. Nvidia had been gearing up output in anticipation of over 1 million chips ordered by Chinese technology firms, including cloud providers and internet giants.
One analyst said the situation reflects broader regulatory confusion in Beijing. “The question of which government agency is regulating AI and the semiconductor industry in China is really complicated right now,” said George Chen of The Asia Group. “There are competing views… which is leading to a confusing mixture of policies.”
The H200’s import block complicates a rare policy shift in Washington, where the Trump administration in January permitted exports of the chip with caps and oversight meant to protect U.S. national security and industry leadership.
Chinese officials have not publicly explained the directive, and Nvidia did not immediately comment. It remains unclear whether Beijing’s move is temporary or a more lasting effort to promote domestic semiconductor alternatives and exert leverage in broader US–China tech disputes.