Key Points
- Chinese officials have reportedly given tech giants like Alibaba and Tencent the go-ahead to order Nvidia’s H200 AI chips.
- This signals that Beijing is close to formally approving the imports.
- The approval will likely come with a condition that companies also buy a certain amount of domestic chips.
- The move is a major win for Nvidia and for Chinese tech companies that need the powerful chips.
Chinese officials have reportedly told the country’s biggest tech companies that they can start preparing orders for Nvidia’s powerful H200 artificial intelligence chips. The move is a strong signal that Beijing is close to formally approving the import of these crucial components, which are essential for the development of advanced AI.
According to sources, regulators have given companies such as Alibaba, Tencent, and ByteDance “in-principle” approval to proceed with their purchase plans. They are now cleared to discuss the specific amounts they need.
This is a major win for both the Chinese tech giants and for Nvidia. Chinese companies are desperate to get their hands on the best AI hardware to compete with their U.S. rivals, and Nvidia has been lobbying hard to return to the massive Chinese market.
The decision is also a bit of a surprise, coming after weeks of conflicting reports. Just last week, it was reported that Chinese customs had blocked shipments of the H200 and that the government was considering a mandate for companies to buy a certain amount of domestic chips.
It seems a compromise has been reached: Beijing will encourage companies to buy some domestic chips as a condition for approval, but they will still be allowed to import high-performance Nvidia chips.
The H200 is an older-generation chip that the Trump administration has said can be exported to China, even as it restricts the sale of the most cutting-edge components. The move shows that Beijing is prioritizing the immediate needs of its tech industry, even as it continues its long-term push for self-sufficiency.
