China may curb Nvidia H200 supply

by Alimat Aliyeva

China is preparing to restrict access to Nvidia’s second-best generation of AI chips, the H200, as the country pushes toward greater self-sufficiency in semiconductor production, the Financial Times reported on Tuesday, citing two people familiar with the matter. This move comes despite U.S. President Donald Trump’s recent decision to allow exports of the technology to China, Azernews reports, citing foreign media.

Under the proposed rules, buyers in China would likely need to undergo a regulatory approval process, submitting formal requests to purchase the chips and explaining why domestic alternatives cannot meet their needs. According to the sources, the plan is still being finalized and could be adjusted before implementation.

Trump announced on Truth Social earlier that Nvidia would be allowed to sell its H200 processors to “approved customers” in China and select other countries, on the condition that the U.S. government receives a 25% cut of the revenue. He also claimed that Chinese President Xi Jinping had “responded positively” to the arrangement.

Industry observers note that Beijing’s move could be part of a broader strategy to reduce reliance on foreign technology while accelerating investment in homegrown AI hardware. Some analysts believe the restrictions could push Chinese tech companies to scale up local innovation more aggressively, potentially reshaping the global AI semiconductor landscape in the long term.