NVIDIA’s H200 wins approval but its entry into China remains uncertain

After US President Donald Trump announced that NVIDIA’s H200 AI chips would be allowed for export to China, companies such as ByteDance and Alibaba contacted NVIDIA to explore potential purchases, according to Reuters. However, whether these orders can ultimately proceed will still depend on official approval.

Why it matters: Although the H200 has been cleared for export, whether it can truly enter the Chinese market will still depend on the trajectory of US policy, the purchasing appetite of Chinese companies, and the development of Chinese chip alternatives.

Details: If Chinese authorities approve domestic companies to purchase NVIDIA’s H200, many Chinese firms would be eager to place large orders, two sources familiar with the matter said. However, one of the sources added that they remain concerned about supply issues and are seeking clear answers from NVIDIA.

• US media outlet The Information also reported that Chinese regulators summoned representatives from companies including Alibaba, ByteDance, and Tencent, asking them to evaluate their potential demand for the H200.
• Sources said Chinese companies are highly interested in the H200 because its large-model training performance surpasses that of current Chinese-made AI chips, which are generally more suitable for inference workloads.
• Chinese companies expect regulators may need to review their H200 purchase applications and request detailed use cases, according to Reuters. Beijing is currently weighing the costs and benefits of allowing H200 imports, as it aims to continue encouraging domestic firms to adopt homegrown AI chips, such as those from Cambricon.

Context: US President Donald Trump announced on Monday that NVIDIA will be allowed to sell its H200 AI chips to “approved customers” in China, but under stringent conditions.

• Each sale will require a 25% revenue share to be paid to the US government, and only designated customers will be eligible. Meanwhile, NVIDIA’s cutting-edge Blackwell and Rubin series remain banned.

• Although the announcement offers a glimmer of hope for NVIDIA’s return to the Chinese market, uncertainty still surrounds whether the H200 can ultimately be sold in China.