China is preparing to tighten access to Nvidia’s H200 chips even as the technology edges closer to returning to the local market.
As per a Financial Times reports, officials in Beijing are reviewing how the processor should be used at a time when the country is pushing to reduce dependence on foreign suppliers and build a self sufficient semiconductor industry.
The discussions began before Washington signalled a potential policy shift. Experts said regulators are exploring a system that would grant only limited access to the H200.
Nvidia’s H200 is its second strongest AI processor and a key component for companies training advanced models.
Approval steps considered
Under the plan being discussed, buyers would need to apply for permission before purchasing the chip, the report stated, citing sources.
They would also need to explain why domestic alternatives cannot meet their requirements.
The review gained momentum after Donald Trump posted on Truth Social on Monday that he had informed Chinese President Xi Jinping that the US would allow Nvidia to ship H200 chips to approved customers in China.
Trump added that 25% would be paid to the United States, though he did not provide further details on how this arrangement would work.
The Biden administration had previously banned exports of the H200 and other high-end processors over concerns that the hardware could support military development.
Nvidia chief executive Jensen Huang has pushed for restrictions to be eased, while supporters argue that allowing exports would maintain China’s dependency on US technology.
Local chip effort rising
China has used the earlier US ban as a catalyst to accelerate its own semiconductor programme.
Measures include stepped up customs checks of chip imports and energy subsidies for data centres that switch to domestic processors.
Regulators leading this push, including the National Development and Reform Commission and the Ministry of Industry and Information Technology, may also stop public sector entities from purchasing the H200, notes Financial Times.
The chip’s return would be closely watched by Chinese tech giants such as Alibaba, ByteDance and Tencent.
They have adopted more domestic chips for basic AI tasks, but still prefer Nvidia hardware for model training because of its stronger performance and simpler maintenance.
Many firms have been training models overseas to reach chips that remain restricted at home.
US debate continues
Trump’s support for exports faces resistance in Congress. A group of US senators introduced legislation that would block the administration from approving shipments of Nvidia chips, including the H200, for 30 months.
Washington may also design an approval framework that limits sales to companies considered safe.
Nvidia already holds approval to sell the H20, a reduced-performance version of the H200 built for China.
In August, the company agreed to pay the US government 15% of its revenue from chip sales in China.
Beijing still has limited access to the H20 because the chip’s performance does not significantly exceed that of domestic offerings.
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