China Blocks Nvidia H200 AI Chips at Customs Despite U.S. Export Approval
GeokHub
Beijing | Jan 14 — GeokHub Chinese customs authorities have instructed border agents that Nvidia’s H200 artificial intelligence chips are not permitted to enter China, according to multiple people familiar with the matter, effectively freezing shipments despite recent U.S. approval for exports.
Sources said Chinese officials also summoned domestic technology companies this week, warning them not to purchase the H200 chips unless absolutely necessary, signaling what industry insiders describe as a de facto ban — at least for now.
“The language used by officials is extremely strict,” one source said. “It amounts to a ban at the moment, though it could change depending on how the situation evolves.”
The H200, Nvidia’s second most powerful AI processor, has become one of the most sensitive flashpoints in the escalating technology standoff between Washington and Beijing. While demand from Chinese firms remains strong, it is unclear whether China intends a permanent ban to protect domestic chipmakers or is using the restrictions as leverage in negotiations with the United States.
Earlier this week, the Trump administration formally cleared the H200 for export to China under specific conditions. The decision drew criticism in Washington, with some U.S. lawmakers warning the chip could accelerate China’s military and AI capabilities.
Chinese authorities have not explained the basis for their instructions, nor clarified whether the measures apply to existing H200 orders or only new purchases. Government agencies including China’s customs authority and industrial regulators did not respond to requests for comment, while Nvidia also declined to comment.
Possible Exemptions and Strategic Pressure
Industry publication The Information reported that Chinese officials told some companies purchases might be approved only under special circumstances, such as research partnerships with universities. Sources confirmed exemptions are being discussed for academic and limited R&D use.
Analysts say Beijing’s move could be designed to increase pressure on Washington ahead of U.S. President Donald Trump’s expected April visit to Beijing, where trade and technology controls are expected to dominate talks.
“China believes the U.S. is eager to sell advanced AI chips,” said geopolitical strategist Reva Goujon. “That gives Beijing leverage to push for broader concessions on technology restrictions.”
Since 2022, the U.S. has imposed sweeping limits on China’s access to advanced semiconductors. Last year, Trump briefly banned and then allowed exports of Nvidia’s weaker H20 chip — only for China to later block those imports internally, prompting Nvidia CEO Jensen Huang to say the company’s China AI chip market share had fallen to zero.
The H200, which delivers roughly six times the performance of the H20, is considered far more capable for training advanced AI models. While Chinese firms such as Huawei have developed alternatives like the Ascend 910C, analysts say the H200 remains significantly more efficient.
Sources estimate Chinese companies have placed orders for over two million H200 chips, priced at around $27,000 each, far exceeding Nvidia’s available inventory. Whether those sales ultimately proceed remains uncertain.
