China asks tech firms to halt orders for Nvidia’s H200 chips, Information reports
Jan 7 (Reuters) – Beijing asked some Chinese technology companies this week to halt orders for Nvidia’s H200 chips, which is expected to force domestic orders. artificial intelligence Information published on Wednesday reported that the chip purchases had taken place, citing people familiar with the matter.
As the United States tightens controls on exports of advanced semiconductors used in artificial intelligence, Nvidia has been caught between Washington and Beijing as Chinese companies try to reduce reliance on US-designed chips.
Tensions over technology trade have been a central feature of broader US-China conflicts, with semiconductors emerging as a strategic flashpoint.
China’s directive to suspend orders was issued as the government considers whether and under what conditions it will allow access to Nvidia’s high-performance chips.
Beijing aims to prevent local tech companies from rushing to stockpile the United States. The report states that the chips will be sold before a decision is made.
“China is determined to base its national development on its own strengths, and is also willing to maintain dialogue and cooperation with all parties to maintain the stability of global industrial and supply chains,” said Liu Pengyu, spokesman for the Chinese Embassy in the United States.
Nvidia did not immediately respond to Reuters’ request for comment, and China’s Ministry of Commerce and the Ministry of Industry and Information Technology did not immediately return calls after business hours.
Nvidia CEO Jensen Huang said at the Consumer Electronics Show this week that demand for the H200 chip is strong in China and that the company sees the purchase orders as a signal of approval rather than waiting for any official announcement from Beijing.
US export licenses for the chips are still being processed with no set timeline.
Late last year, US President Donald Trump’s administration approved the export of H200 chips to China; This marked a significant reversal of previous bans on advanced AI hardware.
The approval was based on the requirement that the company pay a unique 25% revenue sharing tax to the US government.
The H200 is the predecessor to Nvidia’s current flagship “Blackwell” chips.
(Reporting by Akash Sriram in Bengaluru; Editing by Anil D’Silva and Shinjini Ganguli)
