BEIJING (GeokHub) — Chinese authorities have approved the import of Nvidia’s advanced H200 artificial intelligence chips for a select group of the country’s largest technology companies, signaling a cautious shift in Beijing’s approach to balancing AI development with support for domestic semiconductor production.
People familiar with the matter said ByteDance, Alibaba, and Tencent have been authorized to purchase a combined total of more than 400,000 H200 chips, marking the first batch of approvals. Additional companies are now seeking clearance in subsequent rounds, though the criteria and timing remain unclear.
The approvals come with conditions that are still being finalized, according to the sources. Some industry participants said the licensing terms may be restrictive enough to slow or delay the conversion of approvals into confirmed purchase orders.
Strategic Timing Amid Executive Visit
The regulatory green light was granted during a high-profile visit to China by Nvidia’s chief executive, who met with employees and government officials across several cities. Neither Chinese regulators nor the companies involved have publicly commented on the approvals.
China has previously advised domestic technology firms to limit purchases of foreign chips to cases of clear necessity. Officials have also explored policies that would require buyers of advanced foreign semiconductors to pair those purchases with a quota of domestically produced chips.
A Flashpoint in U.S.–China Tech Relations
Nvidia’s H200, the company’s second most powerful AI chip, has become a focal point in ongoing technology tensions between Washington and Beijing. While exports have received clearance from U.S. authorities, Chinese regulators retain final authority over whether the chips can enter the country.
Demand from Chinese firms has been strong, driven by massive investments in data centers used to train and deploy artificial intelligence models. Industry sources say orders placed by Chinese companies far exceed Nvidia’s available supply, underscoring the intensity of competition for advanced computing hardware.
Until recently, uncertainty over Chinese regulatory approval had stalled shipments, even as interest from buyers continued to grow.
Domestic Industry Still a Priority
Beijing’s decision reflects a broader balancing act. While Chinese chipmakers have made progress in developing alternatives, domestic products still trail the performance of Nvidia’s top-tier AI processors. The H200 delivers multiple times the computing capability of earlier models previously allowed into China.
Officials appear to be prioritizing the needs of major internet platforms racing to develop AI services, while still seeking to protect and nurture the country’s semiconductor industry through conditional approvals.
It remains uncertain how many additional firms will receive permission to import the chips or whether future approvals will come with tighter requirements.
