Key Moments
- Chinese customs told agents that Nvidia’s H200 AI chips cannot enter the country, according to sources.
- Officials instructed domestic tech firms not to buy H200 chips unless strictly necessary. One source described it as “basically a ban for now.”
- Chinese buyers have ordered more than two million H200 units at around $27,000 each, far exceeding Nvidia’s stock of 700,000 chips, sources said last month.
China Signals Hard Line on Nvidia’s H200
Chinese customs informed agents this week that H200 AI chips are not allowed in China, three sources said.
Meanwhile, government officials called in domestic tech companies on Tuesday. They warned firms not to buy H200 chips unless necessary, according to three sources.
One source said, “The wording from officials is so severe that it is basically a ban for now, though this could change in the future.”
BREAKING:
🇺🇲🇨🇳 China refuses to accept Nvidia chips
Despite President Trump authorizing the sale of Nvidia H200 chips to China, China refuses to accept them and increase restrictions on their use – Financial Times pic.twitter.com/vgDdudZCmM
— Megatron (@Megatron_ron) December 9, 2025
Unclear Policy Direction From Beijing
The H200, Nvidia’s second most powerful AI chip, has become a key point in U.S.-China tensions. Demand from Chinese firms is strong, but Beijing’s intentions remain unclear.
Sources said it is uncertain whether China wants to block the chip, support domestic chipmakers, or use restrictions as leverage in talks with Washington.
The H200 was formally cleared for export to China this week under conditions by the U.S. government. In the U.S., some policymakers worry it could strengthen China’s military and weaken America’s AI lead.
The sources spoke anonymously due to sensitivity. They said Chinese authorities provided no explanation and did not clarify if the ban is permanent or temporary.
Reuters could not confirm whether the ban applies to existing H200 orders or only new sales.
Official Silence and Limited Exemptions
China’s Customs, Ministry of Industry and Information Technology, and the National Development and Reform Commission did not respond to Reuters requests. Nvidia also declined to comment.
According to The Information, China told some tech companies that H200 purchases could only be approved under special conditions, such as research and development with universities.
One source said exemptions for R&D and universities are still under discussion.
Context: U.S. Controls and China’s Response
The United States has restricted exports of high-end AI chips to China since 2022 to slow its AI development.
Last year, Trump first blocked and then allowed exports of the weaker H20 chip. However, Beijing effectively halted those sales around August. Nvidia CEO Jensen Huang said the company’s share of China’s AI chip market fell to zero.
H200’s Performance Edge and Massive Chinese Orders
The H200 performs roughly six times better than the H20, making it highly sought for AI workloads.
Although Chinese chipmakers offer processors such as Huawei’s Ascend 910C, the H200 is far more efficient for large AI models.
Chinese companies have ordered over two million H200 chips at $27,000 each, far exceeding Nvidia’s stock of 700,000 units, sources said last month.
Export Conditions Imposed by the U.S.
The U.S. restricts China to buying no more than 50% of total H200 chips sold to U.S. customers.
Key Data Points
| Item | Detail |
|---|---|
| Chip model | H200 (Nvidia’s second most powerful AI chip) |
| Stance by Chinese customs | Told agents H200 chips cannot enter China |
| Guidance to Chinese tech firms | Instructed not to buy H200 unless necessary |
| Potential exemptions | R&D and university collaborations (under discussion) |
| Relative performance | H200 delivers roughly six times the performance of H20 |
| Chinese orders | More than 2,000,000 H200 chips |
| Approximate price per chip | $27,000 |
| Available Nvidia inventory | 700,000 H200 chips |
| U.S. export condition | China limited to no more than 50% of total H200 chips sold to U.S. customers |
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