China Restricts Nvidia Chip Purchases to Special Circumstances

The Chinese government this week told some tech companies it would only approve their purchases of Nvidia’s H200 AI chips under special circumstances, such as for university research and development labs, according to two people with direct knowledge of the situation.

The latest communication signals Beijing is hardening its position against reopening the China market to the U.S. chip giant. Last week, The Information reported that Chinese officials had asked companies to temporarily suspend H200 purchase plans while the government deliberated on access terms. At that time, officials were exploring whether to require Chinese firms to buy domestic AI chips at specified ratios alongside any H200 purchases, which would have permitted the purchase of a limited amount of Nvidia’s chips.