China requests local companies to suspend procurement of NVIDIA H200 chips, hoping to support domestic semiconductors.

The United States recently relaxed export restrictions and opened high-end AI chips to the Chinese market, but Beijing chose to step on the brakes, instructing several Chinese tech companies to suspend procurement of Nvidia( H200 chips, reigniting the chip war. The community’s reaction to this move not only reflects the technological rivalry between China and the US but may also be a retaliation for the recent US surprise attack on Venezuela.

China Urgently Applies the Brakes, Demands Companies Halt Nvidia Chip Purchases

According to The Information, the Chinese government has instructed local tech companies to suspend procurement of Nvidia H200 AI chips. Sources reveal this is a temporary measure aimed at preventing local enterprises from stockpiling American chips before government policies are finalized.

Just weeks ago, the US government eased export policies, allowing Nvidia to sell H200 chips to China under new regulations that aim to “counter China’s domestic semiconductor development with US-made chips.” However, there were reports of a refusal to use the chips at that time.

)China reportedly refuses Nvidia H200, US chip strategy exposed(

Beijing’s Strategic Consideration: Avoid Stockpiling and Support Domestic Chips

Insiders indicate that Chinese officials continue to send signals emphasizing the potential for further guidance for companies to adopt domestically produced AI chips, such as those from Huawei, to reduce reliance on US-designed technology.

Liu Pengyu, spokesperson for the Chinese embassy in the US, stated: “China will base its development on its own path while maintaining the stability of the global industry and supply chains, demonstrating a stance of both external cooperation and internal autonomy.”

Nevertheless, Tencent) Tencent( was reportedly able to indirectly acquire Nvidia’s Blackwell series chips, which were previously prohibited from export to China, through “computing power leasing” from Japanese vendors.

)Tencent bypasses US chip export restrictions, obtains Nvidia Blackwell chips via Japan(

Community Interpretation: Low-Intensity Countermeasures, Pressure on Nvidia

Analysts suggest that, under the long-term US restrictions on China’s access to advanced AI chips and technology, Beijing cannot influence US policy directly but can exert pressure through its large demand market on companies like Nvidia. Compared to a full ban, suspending procurement serves to convey Beijing’s stance while avoiding larger trade or tech tensions.

Another perspective is that this move may also be a “low-intensity” retaliation for the US’s surprise attack on Venezuela and cutting off China’s oil supplies.

Nvidia Responds: Demand Still Strong, Patience for Policy Clarity

In response to market concerns, Nvidia downplayed the impact. During CES, Jensen Huang) Jensen Huang(, CEO of Nvidia, stated that demand for H200 in China remains robust, and current orders are viewed as a potential positive signal.

H200 is an important generation in Nvidia’s latest Blackwell series, playing a key role in AI training and inference computations. Despite this, the stock price only rose 1.01% to $189.18, indicating investors remain optimistic about its long-term potential.

US Export Control Policies Remain a Variable, Market Waits and See

From the US perspective, the Trump administration approved the export of H200 to China with conditions, including revenue sharing, and the approval process is quite cumbersome. This highlights how the chip tug-of-war is heavily influenced by US export controls.

Now, the policy game surrounding H200 again symbolizes that AI and semiconductors are no longer just commercial products but key geopolitical bargaining chips.

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