China Sanctions Import of Nvidia’s H200 AI Chips: A Game-Changer in AI Development
In a significant policy shift, China has sanctioned the import of its first batch of Nvidia H200 artificial intelligence chips. This move marks a delicate balance between fostering domestic AI development and promoting indigenous semiconductor manufacturers.
As per sources privy to the matter, China approved the import of several hundred thousand H200 chips during Nvidia CEO Jensen Huang’s visit to the country this week. ByteDance, Alibaba, and Tencent—three of the tech giants in China—have been granted permission to purchase over 400,000 H200 chips collectively. Meanwhile, other firms are lining up for subsequent approvals.
The H200, touted as Nvidia’s second most potent AI chip, boasts approximately six times the performance of the H20 chip, which was previously the most advanced processor allowed for export to China. This approval follows the Trump administration’s clearance of H200 sales to China with a 25% surcharge in January 2026. Chinese technology firms have placed orders for more than 2 million H200 chips, far surpassing Nvidia’s current inventory of approximately 700,000 units.
This development underscores China’s strategic focus on meeting the skyrocketing demand for advanced AI computing power. Major internet companies are investing billions in building data centers to rival U.S. counterparts in the race for AI supremacy.
Source: CNBC