Chinese customs officials have blocked shipments of Nvidia's H200 artificial intelligence processors, despite the US government having approved their export to China, according to a Financial Times report. The move has caused parts suppliers to pause production amid confusion over the restrictions.
Nvidia had expected over one million orders from Chinese clients, with suppliers working around the clock to prepare for shipping as early as March. However, Chinese customs authorities this week told agents that the H200 chips were not permitted to enter the country. Government officials also summoned domestic tech firms to warn against buying the chips unless necessary, without providing reasons or indicating whether the measure is formal or temporary.
The H200, Nvidia's second most powerful AI chip, is a flashpoint in US-Sino relations. The US government had allowed exports of the Taiwan-manufactured chips to China, reportedly taking a share of profits. A 25% tariff was imposed by routing chips through a US laboratory for testing, a policy also applied to AMD's MI325X processor.
Experts are divided on the strategic wisdom of selling the H200 to China. Supporters argue it may slow China's domestic chip development and maintain dependence on US technology. Opponents warn the chip could be used in weapons systems by China's military against the US or its allies.
