China DROPS a BOMBSHELL On H200 AI chips as Nvidia CEO visits Shanghai

Описание: China DROPS a BOMBSHELL On H200 AI chips as Nvidia CEO visits Shanghai

In a development that could reshape the global artificial intelligence landscape, China has given “in-principle approval” to its largest tech firms, including Alibaba, Tencent, and ByteDance, to prepare for the purchase of Nvidia’s H200 AI chips. According to a report by Bloomberg on Friday, the move signals that Beijing is inching closer to formally allowing imports of critical components needed to operate AI systems, despite lingering uncertainties surrounding the approval process.
This decision comes as Nvidia CEO Jensen Huang was spotted in Shanghai, marking his first visit to China this year. Huang’s presence underscores the significance of the negotiations, with the U.S.-made H200 chip now at the center of delicate U.S.-China trade and technology discussions. For Nvidia, gaining access to China—the world’s largest semiconductor market—would be a major strategic win. The company’s CEO has projected that the AI chip segment alone could generate $50 billion in revenue in the coming years, a figure that highlights the enormous commercial stakes involved.
Preparing for a Major Purchase
According to sources familiar with the matter, Chinese authorities have now allowed the tech giants to move to the next stage of preparations. They can discuss quantities needed, the structure of orders, and other logistical specifics—an important step toward potentially unlocking one of the largest AI chip markets on the planet.
Beijing has, however, made clear that companies may be required to purchase a certain amount of domestic chips as a condition for permission to acquire H200s. While no exact number has been disclosed, this stipulation reflects the government’s broader push for semiconductor self-sufficiency. Analysts suggest that Beijing is keen to balance the need for cutting-edge foreign technology with its long-term strategy to foster domestic chipmakers, including heavyweights such as Huawei Technologies Co. and Cambricon Technologies Corp.
The H200, a last-generation Nvidia chip, has emerged as a key tool for AI operations. Unlike the company’s newest Blackwell line, the H200 is slightly older yet still remarkably capable, delivering the performance necessary for advanced AI training and deployment. Its availability could help Chinese tech firms accelerate AI development, from cloud-based AI services to consumer applications.
A Contradiction in Chinese Policy
Interestingly, Beijing’s recent directives to its tech giants appear to contradict earlier reports suggesting that the government was blocking H200 shipments. Last week, the Financial Times reported that suppliers had halted production of H200 chips due to uncertainties around approval. This apparent shift indicates that Chinese authorities may have reconsidered their approach, balancing industrial policy objectives with the urgent operational needs of its hyperscalers.
The Trump administration has consistently maintained that the H200, although powerful, can be exported to China under specific conditions. The U.S. government continues to restrict cutting-edge AI components on national security grounds, but the H200—older yet highly sought after—was deemed permissible for shipment. This compromise underscores the broader tension in U.S. export policy: how to allow American companies to profit from overseas markets while minimizing the risk of sensitive technology falling into potentially adversarial hands.
Regulatory Nuances and Limits
Bloomberg previously reported that China might authorize some H200 imports as early as this quarter, but with clear limitations. The chips would not be allowed for sensitive government agencies or critical infrastructure, a distinction that remains to be clarified. In other words, while commercial tech giants may benefit, strategic areas remain off-limits, reflecting Beijing’s cautious approach to foreign AI technology.
The companies themselves are keenly interested in acquiring the chips. Alibaba and ByteDance, according to prior private discussions with Nvidia, have expressed interest in ordering more than 200,000 units each. Other major players, including Tencent and emerging AI startups like DeepSeek, are also likely to be involved in similar preparations, reflecting the skyrocketing demand for AI hardware in China.
Despite this interest, Nvidia executives have acknowledged that the company has not directly negotiated with Beijing regarding approval. At present, the exact timeline for final government authorization remains unclear. The situation reflects the complex dance between U.S. export approvals, Chinese regulatory oversight, and the commercial ambitions of the tech firms themselves.