Beijing's Tightening Grip: Nvidia's AI Chip Export Challenge

Beijing plans to restrict access to Nvidia's advanced H200 chips despite a U.S. decision to allow exports. The move raises challenges for Nvidia and other U.S. chipmakers in China. Earlier U.S. restrictions impacted Nvidia's growth, and a 25% fee applies to H200 exports. China's stance affects Nvidia's market expansion.

In a significant development, Beijing is poised to impose restrictions on Nvidia's cutting-edge H200 chips, despite U.S. President Donald Trump's recent move to greenlight their export to China. According to sources cited by the Financial Times, Chinese regulators are debating measures to limit access to these advanced AI chips.

This decision introduces a challenge for Nvidia and other premier American chip manufacturers, as they navigate the complexities of the Chinese market. Trump's announcement seemed to settle a contentious issue over the sale of AI chips to China, but Beijing's restrictions could complicate efforts to maintain a competitive edge.

Nvidia's stock, which initially climbed by 2% in premarket trading, saw gains reduced following the report and settled at a 0.6% increase. Despite earlier U.S. bans on selling advanced AI processors to China, Trump lifted restrictions on H200 chips with a 25% fee, although broader impacts on Nvidia's business remain uncertain.

(With inputs from agencies.)