Chinese Customs Block Nvidia's AI Chip Amid U.S.-China Tensions

Chinese customs authorities have prohibited Nvidia's H200 AI chips from entering China, amid ongoing tensions with the U.S. The restrictions may be temporary or a bargaining tactic. China's motives remain unclear, despite demand for the chips among Chinese tech firms.

Chinese customs authorities have halted the entry of Nvidia's H200 artificial intelligence chips, according to sources familiar with the matter. Authorities instructed domestic tech companies to avoid purchasing the chips unless absolutely necessary.

The H200, Nvidia's second most powerful AI chip, has become a focal point in U.S.-China relations. While Beijing's exact motives remain unclear, the move raises questions about its intentions to support domestic chipmakers or leverage the situation in negotiations with Washington.

Despite formal export approval with conditions from the Trump administration, concerns persist in the U.S. over the potential military advantages China could gain. Exemptions in China are being discussed for R&D purposes, but broader implications of the directive are still unfolding as major orders await clarity.

(With inputs from agencies.)