China has asked some domestic technology companies to temporarily halt orders for Nvidia’s H200 artificial intelligence chips, according to a report by The Information citing people familiar with the matter. The move comes as Chinese authorities review whether and under what conditions the advanced US-made chips should be allowed into the country.
Why Beijing has intervened
The report said Chinese officials are concerned that companies may rush to stockpile foreign chips ahead of a formal policy decision. By asking firms to pause new orders, authorities aim to retain control over the volume of high-end chips entering China during the review process. The government is also expected to encourage companies to increase purchases of domestically produced AI chips alongside any foreign sourcing.
Demand signals remain strong
Despite the pause request, demand for the H200 chip in China continues to be robust. Jensen Huang, chief executive of Nvidia, said earlier this week that the company is treating customer purchase orders as an indication of approval rather than waiting for a formal announcement from Beijing.
Tighter sales terms for Chinese buyers
Reuters separately reported that Nvidia has tightened its sales conditions for Chinese customers amid regulatory uncertainty. Buyers are now required to pay the full amount upfront for H200 orders, with no scope for cancellation, refunds or changes once placed. In some cases, customers may offer insurance or assets instead of cash. Previously, Chinese clients were allowed to pay only a deposit.
Broader US–China tech tensions
Advanced semiconductors have become a central point of friction in the US–China technology rivalry. While Washington has imposed restrictions on exports of cutting-edge chips, Beijing is pushing to reduce reliance on US-designed technology. Nvidia finds itself navigating pressure from both sides.
Late last year, the administration of Donald Trump allowed Nvidia to export H200 chips to China, but attached conditions. These included a requirement for Nvidia to share 25 percent of revenue from such sales with the US government, alongside assurances that the company would not ship its most advanced chips to China.
The outcome of China’s ongoing review is expected to shape near-term demand and supply dynamics for high-end AI chips in the country.
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