China Blocks Nvidia AI Chips Amidst Sino-U.S. Tech Tensions

Chinese customs have halted Nvidia's H200 AI chip imports, adding strain to U.S.-Sino tech relations. Chinese tech firms have been warned against purchasing these chips unless necessary. This move could be a strategy to gain leverage over the U.S. in the ongoing trade negotiations and tech restrictions debates.

In a controversial move, Chinese customs authorities have reportedly halted the import of Nvidia's H200 AI chips, escalating tensions in U.S.-China technology relations. Sources indicate that Chinese officials convened with domestic tech firms, advising against purchase of these chips unless absolutely necessary.

The H200 chip, Nvidia's second most powerful AI processor, is at the center of a geopolitical dispute. Despite significant demand from Chinese companies, Beijing's intentions remain ambiguous, whether to protect domestic industries or as a bargaining chip in diplomatic negotiations with Washington.

Amidst these developments, analysts suggest Beijing is leveraging the situation ahead of upcoming talks between U.S. President Trump and Xi Jinping. As the U.S. continues to restrict high-tech exports, both nations remain locked in a complex tug-of-war over AI supremacy.

(With inputs from agencies.)