China To Reportedly Restrict Nvidia H200 Chip Use

• The move highlights Beijing’s cautious stance toward unrestricted access to cutting-edge AI infrastructure.
• On Monday, President Donald Trump said that the U.S. will allow Nvidia to ship its H200 chips to China.

Beijing is reportedly preparing to curb domestic access to advanced H200 chips from NVIDIA Inc. (NVDA), even though the U.S. government cleared their export to China.

The move highlights Beijing’s cautious stance toward unrestricted access to cutting-edge AI infrastructure and its ambition to become self-sufficient in chip production. 

China’s Plan

According to the Financial Times report, the Chinese government plans to limit usage of Nvidia’s powerful H200 chips, designed for heavy-duty AI processing, on its soil.

On Monday, President Donald Trump said that the U.S. will allow Nvidia to ship its H200 chips to “approved customers” in China and other countries. Trump said the chips could be exported only if “strong national security” is maintained, and he suggested that the U.S. government would receive about 25% of the revenue from those chip sales as part of the arrangement.

Nvidia’s stock inched 0.2% higher in Tuesday’s premarket.  

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