China drafts rules to restrict Nvidia H200 AI chip acquisitions
China is drafting rules to regulate purchases of Nvidia H200 AI chips by local firms, allowing limited sales from foreign makers like Nvidia rather than an outright ban, Nikkei Asia reported on January 15 citing two sources familiar with the matter.
The Chinese central government aims to control the total volume of cutting-edge AI chips that domestic companies can acquire. This approach permits some transactions with Nvidia while imposing restrictions on quantities. Reuters could not independently verify the Nikkei Asia report, and Nvidia declined to provide comment on the development.
The reported Chinese measures follow the Trump administration’s decision on Tuesday to formally approve sales of U.S.-based Nvidia H200 chips to China. These high-performance AI chips had received export clearance from U.S. authorities.
On Wednesday, U.S. lawmakers and former officials criticized the approval. They argued that permitting the sales undermines America’s advantage in artificial intelligence technology and risks enhancing Beijing’s military capabilities through access to advanced computing power.
Reuters exclusively reported on Wednesday that Chinese customs authorities instructed agents this week to block entry of Nvidia H200 AI chips into the country. This directive effectively prevents the chips from reaching Chinese buyers despite the U.S. export approval.
Separately, the Chinese government convened a meeting with domestic technology companies. Officials explicitly directed these firms not to purchase the H200 chips unless deemed absolutely necessary for their operations.