Xi Jinping Finally Relents, Opens Door Wide for US
The Chinese government is reportedly preparing a policy that will allow the country’s largest artificial intelligence (AI) companies to purchase Nvidia H200 chips in limited quantities. This move signals a potential shift in Beijing’s stance amid increasing demand for computing power to develop AI.
The Information reported that the Chinese government plans to grant permission to several domestic technology firms to buy the Nvidia H200 chips, citing two sources with direct knowledge of the discussions. In recent weeks, Chinese officials have reportedly informed Alibaba, ByteDance, and DeepSeek that they are likely to soon receive approval to purchase some of the H200 chips.
The report received an immediate positive response from the market, with Nvidia shares rising approximately 1% after the news circulated.
The US government had previously authorised Nvidia to sell H200 AI chips to China and granted licences to around 10 Chinese companies for the purchase. However, the Chinese government had not yet approved the acquisitions, as it sought to encourage the growth of domestic chip suppliers.
In March, Reuters reported that Nvidia had obtained approval from Beijing to sell H200 chips to China, according to several sources. During the same period, Nvidia CEO Jensen Huang also told CNBC that his company had received permission from the Chinese government.
Nevertheless, Beijing is still determining the exact number of Nvidia chips to be approved. According to The Information’s report, the total purchase approval is likely to be fewer than 200,000 units, which is less than half the quantity previously requested by Chinese companies earlier this year.
Last month, Reuters also exclusively reported that Nvidia had informed its customers in China that its latest AI processor for data centres, named ‘Vera’, could be available as early as August. The company has also reportedly opened orders for the product.
Previously, Jensen Huang revealed that Nvidia’s market share in China had practically fallen to zero in October, a situation triggered by US export restrictions and the Chinese government’s push to strengthen technological self-reliance in strategic sectors. This potential change in China’s attitude underscores the growing computing capacity crisis faced by technology companies in the country.