China has blocked shipments of Nvidia's H200 artificial intelligence chips, even after the United States approved their export, according to a report cited by news agency Reuters.
The move has led parts suppliers for the H200 chip to pause production, amid growing confusion over trade rules and restrictions. The report, first published by the Financial Times and cited by Reuters, said Chinese customs officials stopped the newly approved chips from entering the country this week.
Sources familiar with the matter said Chinese authorities also warned domestic technology companies against purchasing the chips unless absolutely necessary. Officials reportedly did not clarify whether the restrictions amount to a formal ban or a temporary measure.
Nvidia had expected strong demand from China, with more than one million orders anticipated. Suppliers were preparing for shipments as early as March and were operating at full capacity before the sudden halt. Nvidia has not commented publicly on the development.
The H200 is Nvidia's second most powerful AI processor and has become a sensitive issue in US-China relations. While Chinese companies are eager to access the chip, it remains unclear whether Beijing aims to block imports permanently to boost domestic chipmakers or is using the move as a negotiating tactic.
The situation is further complicated by US trade measures. Although Washington cleared the H200 for export, it required the chips to be routed through the US for testing, allowing a 25% tariff to be imposed. The same tariff applies to AMD's MI325X chip, according to BBC.
Analysts remain divided on whether allowing advanced AI chips into China serves US strategic interests, citing concerns over technological dependence and potential military use.
(With inputs from Reuters)
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