China’s government on Jan. 13 instructed some technology companies that it would approve purchases of Nvidia’s H200 AI chips only under special circumstances, such as university research, according to a report from The Information citing two people with direct knowledge.
The directive was described as “deliberately vague,” directing firms to acquire the chips only when “necessary” without clarifying the term’s meaning. Last week, The Information reported that China had asked certain companies to suspend their H200 orders to prioritize domestic firms amid its push to lead in AI development.
The restrictions indicate Beijing’s ongoing caution toward fully reopening the Chinese market to Nvidia. The company’s semiconductors power the most advanced AI applications and data centers.
Nvidia faces pressures from both U.S. export controls on advanced technology and China’s efforts to bolster local AI capabilities while reducing dependence on foreign suppliers.
Chinese Embassy spokesperson Liu Pengyu stated: “As principle, ensuring the smooth development of economic, trade, and technological cooperation is in the common interest of both China and the U.S.”
China plans further meetings with additional companies to issue the purchase directive, though it remains unclear if these sessions will offer new instructions.
