Chinese customs authorities have instructed agents that Nvidia’s H200 artificial intelligence chips are not permitted to enter the country, according to multiple people briefed on the matter.
The directive was communicated internally this week and has already begun affecting shipments, sources familiar with the situation said.
At the same time, Chinese government officials summoned domestic technology companies to meetings on Tuesday and explicitly warned them not to purchase the chips unless absolutely 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 person familiar with the discussions said.
Policy Direction Remains Unclear
The H200 chip, Nvidia’s second most powerful AI processor, has emerged as a major flashpoint in the increasingly strained technology relationship between Washington and Beijing.
Despite strong demand from Chinese firms, it remains unclear whether China intends to impose a permanent ban or is still weighing restrictions as part of a broader policy review.
Another possibility is that the measures could serve as leverage in future negotiations with the United States, rather than a definitive decision on market access.
The chip was formally approved by the Trump administration for export to China earlier this week, although that approval came with specific conditions.
In Washington, the approval itself has generated controversy, with U.S. lawmakers warning the technology could enhance China’s military capabilities and narrow America’s lead in artificial intelligence.
Authorities Offer No Formal Explanation
People familiar with the situation said Chinese authorities have not provided written reasoning for the restrictions or clarified whether the move constitutes a formal ban.
Officials have also not indicated whether existing H200 purchase agreements will be honored or if the measures apply only to new orders.
China’s customs authority, industry ministry, and economic planning commission did not respond to requests for comment, while Nvidia also declined to respond.
This lack of clarity has left Chinese technology firms uncertain about future procurement plans and ongoing infrastructure investments.
Limited Exemptions Under Discussion
Some technology companies have been told approvals may only be granted under special circumstances, such as joint research projects conducted with universities.
Exemptions for research and development purposes are currently under discussion, according to people familiar with the talks.
Since 2022, the United States has steadily tightened export controls aimed at limiting China’s access to advanced semiconductor technology.
Last year, the Trump administration initially banned and later approved exports of Nvidia’s weaker H20 chip, before Chinese authorities effectively blocked its domestic sales.
Nvidia chief executive Jensen Huang later said the company’s AI chip market share in China had fallen to zero.
Demand Far Outstrips Supply
The H200 offers roughly six times the performance of the H20, making it particularly attractive for training advanced artificial intelligence models at scale.
Although Chinese chipmakers have developed alternatives such as Huawei’s Ascend 910C, the H200 is still widely regarded as more efficient.
Chinese firms have reportedly placed orders exceeding two million H200 chips, each priced at roughly $27,000.
That figure significantly exceeds Nvidia’s available inventory of around 700,000 units.
U.S. export conditions also cap China’s access to no more than half of the total H200 chips sold to American customers.
