China lets AI firms buy Nvidia H200 chips after restricting imports

The approval reflects a delicate balancing act by China between two competing priorities. For years, Beijing has restricted access to advanced U.S. chips as part of a strategy to nurture a domestic semiconductor industry independent of American technology. However, the rapid evolution of AI—and China's major tech firms' need to compete globally—appears to have created pressure to selectively relax those controls. By allowing limited purchases on a case-by-case basis rather than opening a free market, China can supply its leading AI companies while maintaining a degree of strategic gatekeeping.

The approval also comes after Trump granted Nvidia permission to sell H200 chips to China in December, a shift that opens a window for Chinese imports. Yet the fact that Chinese authorities have been slow to implement that permission—and are now doing so with conditions and scrutiny—suggests Beijing is moving cautiously. The requirement that companies specify how many chips they need and justify the purchase indicates a managed transition rather than a reversal of policy. This measured approach allows China to access critical technology for AI development without abandoning its long-standing goal of building indigenous chip capability.