Chinese authorities have asked some local technology firms to temporarily stop placing orders for Nvidia’s H200 AI chips, sources say, as the government moves to encourage the use of domestically developed artificial intelligence processors.
The guidance highlights China’s effort to reduce reliance on foreign semiconductor technology amid growing U.S.-China tensions over advanced chip exports. Nvidia has been navigating a delicate situation, with the US restricting some AI chip exports while Chinese companies look to secure supply for their AI initiatives.
Officials in Beijing are reportedly discouraging stockpiling of US chips until a final policy decision is made regarding access to Nvidia’s high-performance H200.
A spokesperson for the Chinese Embassy in Washington, Liu Pengyu, said the country aims to “develop its own capabilities while cooperating internationally to keep global supply chains stable.”
Nvidia CEO Jensen Huang said that demand from China remains high, but that the company is treating current orders as indications of interest rather than formal approval from Beijing.
The H200 chip, a predecessor to Nvidia’s latest Blackwell processors, continues to be subject to US export licensing rules, including a special revenue-sharing condition imposed last year.