China set to approve limited imports of Nvidia H200 chips
China is planning to approve some imports of Nvidia Corp.’s H200 chips as early as this quarter, according to people familiar with the matter, potentially restoring the company’s access to a key market.
Chinese authorities are preparing to permit domestic firms to purchase the advanced chip from Nvidia for specific commercial applications, the sources said. They requested anonymity because the discussions are confidential, News.Az reports, citing Bloomberg.
The H200 chip, however, will remain prohibited for use by the military, sensitive government departments, critical infrastructure operators and state-owned enterprises due to security concerns. The approach reflects similar restrictions previously imposed by Beijing on foreign products, including devices from Apple Inc. and chips produced by Micron Technology Inc.
If these organizations still ask to use the component, their applications will be reviewed on a case-by-case basis, the people added.
Even with the qualifications, the move represents a major win for Nvidia. China is the world’s largest market for semiconductors, and Chief Executive Officer Jensen Huang has said that the AI chip segment alone could generate $50 billion in the coming years. In the US firm’s absence, local rivals such as Huawei Technologies Co. and Cambricon Technologies Corp. have thrived and plan to sharply increase production in 2026.
The H200 is an older-generation chip that the Trump administration has said can be exported to China. The US government restricts sales of more advanced processors on national security grounds. Nvidia is the leading maker of artificial intelligence accelerators — the chips that help develop and run AI models — which are highly prized by the world’s data center operators.
Alibaba Group Holding Ltd. (BABA) and ByteDance Ltd. have both told Nvidia in private that they are interested in ordering more than 200,000 units each of the H200, according to a person familiar with the matter. Both companies — alongside prominent Chinese startups, including DeepSeek — are rapidly upgrading their models to compete with OpenAI (OPAI.PVT)and other US rivals.
It’s unclear what Beijing will view as critical infrastructure, beyond the more obvious areas such as military or government networks. Private-sector firms such as Alibaba or Baidu Inc. typically provide computing services to a swath of state firms and government agencies, much as Amazon.com Inc. or Microsoft Corp. work with US federal bodies.
Developing advanced semiconductors and artificial intelligence models is a top priority for China, and the country has vowed to come together as a nation to win a technology race with the US.
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