China Reportedly Asks Domestic Companies To Pause On Nvidia H200 Chip Orders

The move comes amid broader efforts by Chinese authorities to strengthen reliance on locally produced semiconductor technology.

• In early December, President Trump approved the export of the H200 chip to China.
• Chinese companies have reportedly placed orders for over two million H200 chips.
• Nvidia CEO Jensen Huang said demand in China for the company’s H200 AI chips is very strong.

China has reportedly instructed several domestic technology firms to pause new orders for advanced artificial intelligence chips made by Nvidia Corp. (NVDA), signaling a possible shift in China’s procurement strategy for high-end computing hardware. 

The move comes amid broader efforts by Chinese authorities to strengthen reliance on locally produced semiconductor technology.

Orders For Nvidia’s H200 Face Scrutiny

According to a Reuters report, Chinese officials have asked companies to stop purchasing Nvidia’s H200 processors. 

In early December, President Trump approved the export of the H200 chip to China, provided that a 25% fee is paid. The H200 is considered the second-most powerful Nvidia chip approved for export and remains the highest-level graphics processor permitted under current U.S. regulations. 

Following the lifting of the export ban, Chinese companies have reportedly placed orders for over 2 million H200 chips, scheduled for delivery in 2026, far higher than the roughly 700,000 units Nvidia can currently supply.

Nvidia stock traded over 1% higher on Wednesday mid-morning. On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day amid a ‘high’ message volume level. 

Strategic Stakes For Both Sides

China has long sought to reduce dependence on foreign semiconductor suppliers, particularly as AI becomes central to economic and military competitiveness. 

Nvidia has encountered growing challenges in China in recent years, particularly after the U.S. government imposed export limits on high-end chips. To adapt, the company developed a tailored version of its chip for the Chinese market, named the H20, intended to comply with the rules.

The latest development comes even as Nvidia CEO Jensen Huang said demand in China for the company’s H200 AI chips is very strong and that the company has restarted production and is finalizing export approvals with U.S. officials, according to a CNBC report. 

NVDA stock has gained over 35% in the last 12 months. 

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