Despite recent US approval for Nvidia to export its H200 AI chips to China, Beijing is considering imposing restrictions on their use. Regulators are discussing measures requiring buyers to seek approval and justify their need for the H200 over domestic alternatives, reflecting China's push for semiconductor self-sufficiency.
This move follows Trump's announcement that Nvidia could ship H200 chips to China under national security conditions, with a 25% fee paid to the US. The H200 is significantly more powerful than its predecessor, the H20. China represents a substantial market for Nvidia's GPUs. However, China has been encouraging the adoption of local technology and may implement measures such as stricter import checks and subsidies for data centres using domestic chips. The National Development and Reform Commission and the Ministry of Industry and Information Technology may also ban public sector purchases of the H200 to bolster local chip competitiveness.
Analysts suggest that these limitations could impact Nvidia's sales in China, potentially favouring domestic chipmakers. Some analysts note the H200 is inferior to Nvidia's latest models, which may further dampen Chinese buyer interest.
