China relents on Nvidia H200 ban, allowing limited chip imports

China has quietly reversed course on Nvidia's advanced H200 AI chip, allowing limited quantities into the country after previously blocking imports to support domestic chipmakers, sources said.

The Financial Times reported Wednesday, citing multiple sources, that ByteDance and Tencent had each received about 10,000 H200 chips in recent weeks. Several other technology companies are expected to secure similar quantities soon.

ByteDance, Tencent and others had originally received US government approval to purchase up to 100,000 H200 chips each. Beijing had blocked the chips from entering the mainland to support domestic chipmakers, but has now permitted a limited volume to come through.

Chinese authorities eased restrictions on US-made chips to ensure the country's leading AI developers can continue building cutting-edge models, sources said.

One source told the FT that some Nvidia partners, including Lenovo, notified Chinese customers last week that they could resume placing orders for products containing H200 chips. Those partners integrate Nvidia chips with central processing units and other networking equipment to sell as AI servers, sources said.

Separately from the mainland shipments, Chinese authorities have also told companies they may send H200 chips to Hong Kong for use there. US government approvals granted to Chinese firms for H200 purchases apply regardless of whether the chips are used on the mainland or in Hong Kong.

Using H200 chips in Hong Kong, however, is proving difficult. The city lacks sufficient data center capacity to accommodate them. "Everyone needs these chips, but they are struggling to find ways to use them in Hong Kong," one source told the FT. "The hope is that controls will gradually ease."

Nvidia holds an inventory of about 500,000 H200 chips, sources said.