At a moment when demand appeared to be accelerating, Chinese authorities have signalled caution on the import of advanced AI chips. Just days after Nvidia’s leadership pointed to strong interest in its H200 processors from China, the government has asked domestic tech firms to temporarily stop placing new orders.
According to a report, Chinese regulators have told local companies to hold off on buying Nvidia’s H200 AI chips while approval terms are finalised. The move comes as Beijing weighs whether, and under what conditions, to allow imports of the advanced processors. The pause is seen as an effort to prevent a rush of last-minute purchases before a formal policy decision is announced.
Officials are still debating how many domestically produced chips companies would need to buy alongside each H200 order, another report said, citing people familiar with the discussions. A separate report noted that China may approve limited H200 imports as early as this quarter for select commercial uses, suggesting access could be conditional rather than fully blocked.
The mixed messaging follows Nvidia CEO Jensen Huang’s recent comments that demand for H200 chips in China is “quite high”. Speaking on Tuesday, Huang said he does not expect a formal approval announcement from China. “If the purchase orders come, it’s because they’re able to place purchase orders,” he told reporters at CES.
Amid the uncertainty, Nvidia has tightened its sales terms for Chinese customers. The company is now requiring full upfront payment for H200 orders, with no refunds, cancellations, or configuration changes allowed after purchase, according to another report. In limited cases, buyers can use commercial insurance or asset collateral instead of cash, but the policy is far stricter than earlier practices that allowed partial deposits.
The tougher terms reflect Nvidia’s attempt to limit risk. Last year, the company took a $5.5 billion inventory write-down after the U.S. administration abruptly banned sales of the H20 chip to China. While the U.S. has since approved H200 exports, with a 25% fee payable to the U.S. government, China has banned the H20 entirely.
Chinese companies have reportedly ordered more than 2 million H200 chips at around $27,000 each, far exceeding Nvidia’s current inventory of about 700,000 units. The H200 offers roughly 6 times the performance of the blocked H20 and outperforms domestic alternatives such as Huawei’s Ascend 910C.
At the same time, China is preparing up to $70 billion in incentives to support its local chip industry, underlining its push for semiconductor self-reliance. For now, both Nvidia and Chinese tech firms are waiting to see whether tentative demand will translate into approved shipments.
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