China blocks Nvidia H200 AI chips that US government cleared for export report

"Suppliers of parts for Nvidia's H200 have paused production after Chinese customs officials blocked shipments of the newly approved artificial intelligence processors from entering China, according to a report. Reuters could not immediately verify the report, which appeared in the Financial Times citing two people with knowledge of the matter. Nvidia did not immediately respond to a Reuters request for comment made outside regular business hours."

"Chinese customs authorities this week told customs agents that Nvidia's H200 chips were not permitted to enter the country, Reuters reported. Sources have also said government officials summoned domestic tech firms to warn them against buying the chips unless it was necessary. The sources, who spoke on condition of anonymity due to the sensitivity of the matter, said authorities had not provided any reasons for their directives and had not given any indication if this was a formal ban or a temporary measure."

"The H200, Nvidia's second most powerful AI chip, is one of the biggest flashpoints in US-Sino relations. There is strong demand from Chinese firms, but it remains unclear if Beijing wants to ban the chips outright to encourage domestic chip companies to develop their own; whether the Chinese government is still mulling restrictions; or if it is all a bargaining tactic."

Chinese customs blocked shipments of Nvidia's newly approved H200 AI processors, prompting suppliers of parts to pause production and halt planned exports. Nvidia had expected more than one million orders from Chinese clients and suppliers had been operating around the clock to prepare shipments as early as March. Customs authorities told agents the H200 chips were not permitted to enter China, and government officials summoned domestic tech firms to warn them against buying the chips unless necessary. Authorities provided no reasons and did not indicate whether directives constitute a formal ban or a temporary measure. The H200 is Nvidia's second most powerful AI chip and a major US–China flashpoint, with unclear Chinese intentions and strong domestic demand. The situation is further complicated by earlier US export arrangements requiring chips to transit a US laboratory for testing and subjecting them to a 25% tariff.

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