Limited batches of Nvidia Corp.’s (NASDAQ:NVDA) powerful H200 AI chips have been approved for shipment into mainland China, signaling a limited easing of restrictions on the advanced chips.
ByteDance and Tencent Holdings Ltd. (OTC:TCEHY) have each received around 10,000 H200 processors in the past few weeks. Other Chinese tech groups may soon receive approval for similarly sized shipments, reported the Financial Times on Wednesday.
H200 chips are older than Nvidia’s latest-generation AI processors, which Chinese customers cannot purchase due to U.S. export controls. Chinese regulators have also allowed companies to ship H200 chips to Hong Kong, which operates under a separate customs regime, for use there.
Last week, several Nvidia partners, including Lenovo, told Chinese customers they could resume ordering products featuring H200 chips. The companies combine Nvidia chips with CPUs and networking equipment to build AI servers.
However, purchases would still require separate approval through an application process overseen by China’s state planner, the National Development and Reform Commission (NDRC), according to the report.
Nvidia did not immediately respond to Benzinga’s request for comments.
H200 Access Faces Hong Kong Limits
Beyond the limited number of H200 chips allowed into mainland China, Chinese regulators have also permitted companies to ship the processors to Hong Kong and deploy them there, despite the city operating outside mainland China’s customs territory.
U.S. licences likewise authorize shipments of Nvidia’s H200 chips to both mainland China and Hong Kong. However, access to Hong Kong does little to ease the pressure on Chinese tech companies because the city lacks enough data-center capacity to accommodate the chips. Power constraints are also expected to limit any rapid expansion.
China Balances Nvidia And Huawei Stakes
In July, Nvidia officially began shipping its H200 artificial intelligence chips to China, under strict case-by-case government licenses. The initial volumes remained heavily restricted. Despite the restrictions, recent U.S. approvals have cleared around 10 Chinese firms to receive advanced AI hardware from Nvidia and Advanced Micro Devices Inc. (NASDAQ:AMD).
This development follows the Trump administration’s authorization of the sale of Nvidia’s H200 AI chips to 10 Chinese tech giants, including Alibaba Group Holding Ltd. (NYSE:BABA) and Tencent Holdings in May. Each approved customer can buy up to 75,000 chips. However, Beijing’s intervention halted the deliveries.
China’s ongoing import controls underscore its push to strengthen domestic chipmakers, particularly Huawei, as they seek to capture a larger share of the world’s second-largest semiconductor market, where Nvidia remains largely shut out by U.S. export restrictions.
Still, China’s limited access to the most advanced chipmaking equipment could constrain its ability to meet rapidly rising domestic demand in the near term. That is likely to keep some demand for Nvidia chips, particularly for AI training.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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