China has tightened its stance on Nvidia’s H200 artificial intelligence chips, with reports saying authorities are limiting when Chinese technology companies can buy them and, separately, telling customs agents the chips are not permitted to enter the country.
The guidance, described as intentionally unclear in one report, suggests Beijing is still cautious about how widely Nvidia’s advanced AI hardware should be used in China, even as demand for high-end chips remains strong.
Purchases allowed only in “special circumstances”
A report cited by Reuters said the Chinese government told some technology companies this week that purchases of Nvidia’s H200 chips would be approved only under “special circumstances.” One example mentioned was use by university research.
The same report said authorities issued a “deliberately vague” directive telling some firms to buy the chips only when “necessary,” while not clearly defining what “necessary” means. The reporting described the move as a sign that Beijing is proceeding carefully when it comes to fully reopening the Chinese market to Nvidia’s chips, which are widely used for advanced AI systems and data centers.
The report also said additional meetings with more companies were expected, though it was unclear whether those meetings would include new guidance beyond what had already been communicated.
Customs agents told H200 chips are “not permitted”
In a separate Reuters report, sources said Chinese customs authorities told customs agents that Nvidia’s H200 chips are not permitted to enter China.
The report said the motivations behind the directive were not clear. It also said it was unclear how the customs direction fits with the reported approach of allowing purchases only under certain limited conditions.
Together, the reports point to a tougher operating environment for companies seeking to bring Nvidia’s H200 chips into China, even in cases where buyers may believe their use fits within research or other narrowly defined needs.
Mixed signals as policy pressure builds
The latest reports follow earlier coverage that China had asked some companies to pause orders for the H200 chips as Beijing sought to prioritize domestic firms in its push to compete in artificial intelligence.
At the same time, Nvidia has faced scrutiny over commercial terms for H200 sales connected to uncertainty around approvals. Reuters reported that Nvidia said it does not require upfront payment for its H200 chips. The company said it would not require customers to pay for products they do not receive.
Times of India also reported on the same broader situation, saying Chinese authorities had told some tech companies purchases would be approved only under special circumstances, including for university research. It also reported that Nvidia denied requiring full upfront payment from Chinese customers for H200 chips.
What it means for Chinese buyers and Nvidia
For Chinese technology companies, the reports suggest that access to Nvidia’s H200 chips may depend not only on commercial negotiations but also on government direction that can be interpreted narrowly and applied unevenly.
For Nvidia, the situation highlights how the company can be caught between different policy pressures as governments weigh national security, industrial policy, and the pace of AI development. In the Reuters report carried by U.S. News, the company’s chips were described as important for operating leading AI applications and data centers, which helps explain why even a limited or unclear directive can have major implications for customers planning large AI builds.
A spokesperson for the Chinese Embassy in Washington, Liu Pengyu, was quoted in the Reuters report carried by U.S. News commenting on the value of smooth economic and technological development as being in the common interest of China and the United States.
